Sales of road building equipment in Russia in the first quarter grew by 22%

Machine builders of the Russian Federation in the first quarter increased sales of road building equipment by 22%, and also managed to increase output by a quarter. Foreign players in the segment, which covers 80% of the market, are also expecting double-digit sales growth. Active purchases in the first quarter are associated with the expected increase in recycling fee – after the decision is made, market participants expect a decline in sales, writes Kommersant.

Sales of domestic road building equipment (RBE) on the Russian market in January-March increased by 22%, to RUB 10.2 billion, follows from the data of Rosspetsmash-Stat (contains information on 80% of RBE and semi-trailers produced in Russia). The production of such machines was growing more actively – by 26%, to RUB 10.6 billion. For three months, shipments of pipe-laying cranes increased by 2.4 times, bulldozers – by 67%, loader cranes – by 58%, mini-loaders – by 22%, wheel loaders – by 20%, excavators – by 18%.

Rosspetsmash (the lobby of domestic machine builders) notes the impact of deferred demand on the market, as well as state support. A year earlier, the program of preferential leasing of special equipment did not work, and sales of Russian equipment fell by 13%. Now the growth "could be even more rapid," the association believes, complaining about the negative impact of dumping from foreigners, in particular Chinese companies, as well as the sale of restored equipment under the guise of new. The association also notes potential risks for the development of the industry: an increase in metal prices and electricity tariffs.

Rosspetsmash is ready to predict the results of the year only after the decision on the increase (up to three times).of the recycling fee is made.

The plans to increase recycling fee have already artificially distorted the picture of the market, the head of Volvo CE in Russia and the CIS, Andrey Komov, is sure: consumers are in a hurry to buy before the fees rise. For example, Volvo's sales also increased. Hitachi has a similar situation, they expect the market to grow by 30% in the first quarter. An increase in the dollar exchange rate by 5.3% also led to an increase in sales in rubles, said Peter Plaunov, Regional Director for Business Development of JCB in Russia (Urals, Siberia and the Far East). According to JCB, the RBE market grew by 15–20% in the first quarter.

Andrey Komov sees risks for increasing sales in a shortage of components due to a shortage of chips, as well as an increase in prices for steel and logistics.



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