The dependence of Japanese construction machinery on China has declined

by:Gewinn     2022-05-10
Japan's large construction machinery companies Komatsu and Hitachi Construction Machinery's sales to China account for a declining proportion of their overall sales. It is expected that in fiscal 2015 (as of March 2016), Komatsu's sales to China will fall to 7%, and Hitachi Construction Machinery will drop to about 10%, less than half of the peak of fiscal 2010. In addition to developing markets in developed countries such as Europe and the United States, the two companies also plan to strengthen after-sales services such as parts replacement globally to increase profit margins. Sales of Komatsu's construction machinery and vehicle divisions for overseas customers in fiscal 2014 are expected to decrease by 2% year-on-year to 1.71 trillion yen. Among them, sales to China are expected to drop by 20% to 130 billion yen. The division's sales to China ratio was 21% in fiscal 2010, and will decrease to 8% this fiscal year.
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