March Loader Sales: Short-Term Pressure from the Pandemic Sends Sales Plummeting, but New Growth Drivers Are Already Emerging!

[Original article from China Construction Machinery Commerce Network] March data have been released: amid the pandemic, the sector faced short-term pressure, with loader sales plunging sharply. Meanwhile, electric loaders—tracked separately—have shown a markedly different sales trajectory. Against the backdrop of mounting downward economic pressures, electrified equipment has emerged as a new frontier for companies seeking to capture market share.

According to statistics from the China Construction Machinery Industry Association, which covers 22 loader manufacturers, sales of all types of loaders in March 2022 totaled 15,309 units, down 32.8% year on year. Of these, domestic sales amounted to 11,399 units, a decline of 38.8% compared with the same period last year, while export sales reached 3,910 units, down 5.81% year on year.

According to the data, since July 2021, with the exception of February—when a surge in project commencements drove growth—the overall trend has remained downward. In March, the decline in sales widened significantly, partly due to the high base effect from the same period last year; after all, both total and domestic loader sales reached their annual peaks in March 2021.

In the domestic market, March retained its traditional peak‑season characteristics, with sales once again surpassing 10,000 units after a 10‑month stretch; however, year‑on‑year sales declined by 38.8%. In addition to last year’s high base, this drop also reflects the relatively mature product lineup of wheel loaders and the stabilizing trend in domestic demand.

Furthermore, examining monthly loader sales data over the years reveals that domestic sales in March this year hit a five-year low. The reasons are twofold: first, the resurgence of COVID‑19 has placed short‑term pressure on manufacturing firms’ performance; second, under pandemic control measures, some companies have suspended operations, workforce mobility has been restricted, domestic logistics capacity has declined, and supply‑chain efficiency has deteriorated markedly.

On the export front, although loader sales in March fell 5.81% year over year, they still ranked second among monthly sales figures for all previous years. The decline was primarily attributable to last year’s exceptionally high base, as well as the impact of the pandemic—namely, reduced international logistics capacity, tight container and warehouse space, and constrained export activity.

However, looking at the overall data, with the exception of a few months, export sales have maintained year-on-year growth since last year, indicating that, driven by the ongoing recovery of overseas economies and the steady improvement in the quality of domestic loader products, the export market continues to exhibit strong momentum.

According to statistical data, a total of 180 electric wheel loaders were sold from January to March 2022, all of which were 5-ton models—39 units in January, 56 in February, and 85 in March. These are the only electrified products included in the statistics. However, the data show that electric models account for less than 1% of total sales; nonetheless, their future growth potential is widely regarded favorably by numerous institutions.

In recent years, the global electrification of construction machinery has accelerated. Driven by environmental regulations, electric wheel loaders have become the mainstream trend in the industry. Amid persistently rising fuel prices and recurring COVID‑19 outbreaks nationwide, demand for electric wheel loaders remains robust. Companies such as LiuGong and Lingong have been delivering these machines in large volumes in recent years, turning them into key marketing highlights and opening up new avenues for gaining market share.

Today, amid a relatively stable existing‑market environment, China’s wheel loader industry has come to exhibit three key characteristics: first, the incremental market for new‑generation loaders—particularly those powered by pure electric technology—has begun to take shape; second, the industry is experiencing steady growth, with product quality improving steadily; and third, international expansion is accelerating, with export markets remaining a crucial driver of growth.

Overall, although loader sales declined significantly in March, the results were broadly in line with market expectations. As demand in the loader market stabilizes, companies are deliberately accelerating the development and deployment of electric‑powered equipment while actively expanding their international presence. Nevertheless, the future of the loader market remains subject to numerous uncertainties.