Korean Construction Machinery Industry Expediting Penetration of New Markets instead of China

Korean construction machinery manufacturers like HD Hyundai Infracore, HD Hyundai Construction Equipment, and Doosan Bobcat are shifting their focus. They’re looking at fast-growing markets such as India, Brazil, Mexico, and Saudi Arabia. These emerging markets are in contrast to North America and Europe where growth has slowed.

Firstly, HD Hyundai Construction Equipment, a major global player, has increased its market share in India. It went from 13.9 percent in 2019 to 17.4 percent in the first quarter of this year. During the same time, Japan’s Hitachi, which was leading in India, saw its share drop from 30.2 percent to 20.8 percent. The Korean company aims to be number one in India with a 30 percent market share by 2030.

HD Hyundai Infracore, also a leading global company, is targeting Mexico and Saudi Arabia. It plans to set up a new sales office in Mexico this September. They want to sell more to local governments and companies involved in resources like mining. They’re introducing large excavators and new heavy equipment, like dump trucks for the mines. HD Hyundai Infracore wants to increase its market share in Mexico from 8.5 percent in 2020 to 13 percent in 2023, and 16 percent by 2028. In Saudi Arabia, they hold the top market position and focus on keeping their customers.

Doosan Bobcat, another top global brand, is looking beyond its main market, North America. While 70 percent of its sales come from there, they plan to sell more in places like the UAE and Brazil.

China used to be the main market for these Korean companies. In 2021, China made up 29 percent and 21 percent of their sales. However, as China started preferring domestic products and the demand slowed, the Korean brands began to look elsewhere from 2022.

The United States saw a surge in construction equipment sales in 2023, thanks to factory constructions under the Inflation Reduction Act. However, the demand has decreased this year, leading to stockpiling. A Korean industry insider mentioned they are reducing exports to North America and Europe as a result.

Now, these Korean companies see opportunity in new markets like India, Latin America, and Southeast Asia. There’s a growing demand for resources such as copper, gold, silver, and lithium in Mexico, Chile, Peru, and Bolivia, which is promising for Korean machinery makers.

Fulian Operation Team

2024.6.19