South Korea’s Hyundai Construction Equipment Co. has been making inroads in China quantitatively and qualitatively.
Hyundai Construction Equipment reported that its heavy equipment sales in China surged more than 40 percent in May from 640 units in the same month last year, extending robust sales of 1,553 units in April, up 47.8 percent from a year ago.
Large machinery soared 50 percent in May compared with the January-March quarter, boosting profitability.
The large equipment was responsible for 8 percent of the company’s total sales in China in the first quarter. Large heavy equipment generates higher margin than smaller ones thanks to their high price tags and bulk orders in general, an industry expert said.
The company attributed its strong sales in China to its efforts to win new customers with enhanced marketing campaigns, especially targeting state-run entities and trade associations. It has introduced free trial offers and actively used digital sales tools including video brochures. It also ran online meetings and trainings for its dealers to boost sales even during the coronavirus-caused lockdowns.
Such efforts paid off and delivered 30 new excavator orders from a Chinese mine association in May, said the company.
The Korean heavy equipment maker vowed to win more deals in China, which is expanding infrastructure spending to revitalize its economy in the post-COVID-19 era, as well as India that just started easing lockdown measures this month.