South Korean companies, led by Doosan Infracore Co., are witnessing better-than-expected sales in China's excavator market as the world's No. 2 economy increased spending on infrastructure, industry sources said Sunday.
According to the data provided by Daishin Securities Co., a total of 6,997 excavators were sold in China in July, more than doubling from a year earlier.
In the case of Doosan Infracore, South Korea's top construction equipment maker, the company saw its excavator sales more than double to 514 units last month from a year earlier, accounting for a 7.3-percent market share there, the data showed.
"Despite seasonally low demand, Doosan Infracore is expanding its market share in China, and may gain further ground," said Cho Chul-hee, an analyst at Korea Investment & Securities.
In the first six months of the year, Doosan Infracore sold 6,609 excavators in China to garner an 8.5-percent market share there.
Its stellar performance was driven by strong demand in China and emerging markets where budget spending on infrastructure and big construction projects have increased.
Demand for excavators has been on a steady rise in China, which roughly accounts for a third of the world's construction equipment market.
Last month, Hyundai Construction Equipment Co., an affiliate of South Korean shipbuilder Hyundai Heavy Industries Co., sold some 206 excavators in China to secure a 2.9-percent market share, the data showed.
"On the back of an expanded sales network and improved quality, South Korean firms are faring well in China," Jung Dong-ik, an analyst at KB Securities.
The analyst expects Doosan Infracore to sell over 9,000 excavators in China this year, almost doubling from last year's performance. (Yonhap)
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