The output of road construction equipment in Russia in 2022 increased by 35% in monetary terms

The production of Russian road construction equipment (DST) for 2022 increased by 35% compared to 2021 and amounted to 75.6 billion rubles. in terms of money. This follows from the statistics of the association “Rosspetsmash”, which was reviewed by “Vedomosti”. The association unites companies producing about 80% of DST in Russia.

DST shipments to consumers increased by 33% in 2022 and amounted to RUB 73.4 billion. In particular, sales of excavators doubled, wheel loaders – by 42%, loader cranes – by 18%, motor graders – by 12%, skid steer loaders and crawler bulldozers – by 6%, according to Rosspetsmash data. The association does not give absolute figures.

Over the nine months of 2022, the output of equipment in money terms increased by 38% to RUB 53.3 billion, while shipments increased by 30% to RUB 48.2 billion. (Vedomosti wrote about this on October 20). However, at the end of 2022, a decrease in sales is recorded in a number of segments.

Shipment of backhoe loaders decreased by 60%, rollers – by 21%, telehandlers – by 19%, pipe-laying cranes – by 12%, truck cranes – by 0.3%. “Domestic producers were forced to reduce the output of their products in certain areas due to the aggressive policy of importers,” the association says in an explanation.

Formerly Vedomosti wrote about the dumping of Chinese and Turkish manufacturers of road equipment on the Russian market.

To solve the problems of Russian manufacturers, DST Rosspetsmash considers it expedient to subsidize equipment manufacturers in the form of grants for the production of components in the amount of at least 10 billion rubles. annually for a period up to 2026. In addition, support for the leasing of DST should be launched, following the example of the program in agricultural engineering.

Denis Kudryavtsev, director general of the Spetsavtoprom association, agrees with Rosspetsmash’s concerns about foreign manufacturers, but specifies that the situation was critical when the dollar exchange rate was the lowest. Despite the fact that Chinese equipment is cheaper, their service is rather poorly developed, and the delivery time for products due to covid restrictions was at least 2 months, the expert notes. He also points to the insufficiently good quality of Chinese steel, which is used to make cars.

Mikhail Burmistrov, General Director of Infoline-analytics, notes that “competition from Chinese and Turkish manufacturers is intensifying, problems with components persist.” State support, according to the expert, is really needed, for example, “a focus on the development of components will help mitigate the risks associated with competitiveness in the long term.”