Special equipment dumped – Newspaper Kommersant No. 28 (7473) dated 02/15/2023

In 2022, the special equipment market in Russia decreased by 33%, and in the main segments it completely rolled back to the level of 2018. The sanctions not only limited the supply of European and Japanese equipment, but also reduced the range of offers of domestic players. At the same time, the renewal of fleets continues, and in 2023, the market, according to industry expectations, will gain a foothold at the current level – problems with demand are expected only in the logistics segment. The supply will grow both from the players of the Russian Federation, Turkey and China, and with the help of parallel imports.

The market of road construction and special equipment in 2022 fell by 33.3%, to 13.7 thousand vehicles, calculated in the Association of European Businesses (AEB; data includes 80% of the Russian market). Sales in the main segments of equipment were approximately at the level of 2018. In the fourth quarter, sales decreased by almost 2.1 times compared to the fourth quarter of 2022, to 3.1 thousand units. Compared to the third quarter, sales were almost unchanged (see Kommersant-Online dated November 3, 2022).

• The fall in 2022 is shown by all segments of equipment, except for wheeled excavators – their sales increased by 9%, to 1 thousand units.
• Sales of backhoe loaders (by 65%, to 1.9 thousand), articulated dump trucks (by 55%, to 145 units) and skid steer loaders (by 53%, to 736 units) decreased the most.
• Of the volume-forming segments, sales of tracked excavators (5.3 thousand), wheel loaders – by 22% (1.2 thousand) fell by 16%.

Recall that at the end of 2021, the market showed record results, for the first time since 2012 (see “Kommersant” dated February 10, 2022). Prior to the outbreak of hostilities in Ukraine, the AEB expected the market to remain at this level if the geopolitical situation did not change. However, due to the military operation in Ukraine, the supply of most of the range of special equipment fell under the sanctions of the EU and Japan. As part of the tenth package of EU sanctions, an expansion of the ban on the import of specialized equipment is now being discussed.

In this situation, the market, in addition to the supplies of domestic players, was replenished only at the expense of Chinese imports. In “Rosspetsmash”, which has already reported on the growth in sales of its members by 33%, up to 73.4 billion rubles, they talked about “aggressive imports of road construction equipment” (see “Kommersant” dated January 20).

In addition to importers, which have basically suspended deliveries to the Russian Federation, domestic Kraneks, PTZ, Chetra, UMG SDM provide data to the AEB. Traditionally, in the fourth quarter there were active purchases of equipment, but the depletion of stocks of vehicles imported into Russia, together with the difficulties in supplying components from domestic players, limited the supply.

“After the start of the special operation and the imposition of sanctions, we cannot produce a significant part of the products; in fact, our product portfolio has halved,” UMG SDM notes. March and April.” In 2023, they do not expect “global changes” in the market volume, but they hope to increase their own sales against the backdrop of expanding the range of equipment and reorienting “large road construction companies from foreign cars to domestic equipment.”

“If before eminent road workers did not even enter into a dialogue with us, now they have turned their faces to us and are actively working out an alternative to what they have lost,” the company explains.

However, in UMG SDM they talk about the gray import of European and Japanese brands, as well as the dumping of Chinese players.

In segments such as excavators, traditionally dominated by imports, the supply of alternative suppliers will grow, says Dmitry Babansky of SBS Consulting. We are talking about both the products of domestic players and imports from China and Turkey, as well as parallel imports. The last channel may become one of the market recovery factors. From the point of view of demand for equipment, the mining and construction sectors are quite stable, he notes, and the latter is supported by the state in every possible way. At the same time, the analyst fears a further drop in demand from logistics companies and a reduction in sales, for example, of telehandlers. In 2022, according to the AEB, since July, their shipments have been piece-wise, and at the end of the year they decreased by 53% (226 pieces).

Olga Nikitina