- Company kicks off local production of 1-2 ton compact excavators in a bid to occupy a 10% share of the Chinese market within three years.
- Bobcat aims to increase sales in other emerging markets such as Southeast Asia and Oceania, with the Chinese plant serving as a global production base.
Doosan Bobcat announced on Aug 5 that it had kicked off the production of compact excavators (1-2 ton) in China, thereby positioning itself as a leading player in the Chinese market for compact construction equipment. The company aims to continue increasing its market share in the huge construction market on the back of the superior cost competitiveness and faster customer response enabled by the local production of its compact excavators.
Doosan Bobcat’s Suzhou Plant in China has now started producing two compact excavator models, the E17Z and the E20Z, in China, whereas it previously had to import them from its plant in the Czech Republic. With the localization of production, the company can boost price competitiveness while shortening the lead time, creating the flexibility necessary to respond quickly to changes in demand. The most notable feature of the 1-2 ton excavators is their zero tail-swing (ZTS) design, which requires a minimal swing radius while guaranteeing the highest level of operational efficiency in even the tightest spaces.
The Chinese market for compact excavators (3 tons or less) on which Doosan Bobcat is focusing its resources is estimated to have exceeded 7,000 units per year after growing at an impressive annual rate of 80% between 2016 and 2019. Doosan Bobcat now plans to achieve a double-digit market share in China within three years based on its high product competitiveness and differentiated financing programs.
“The Chinese compact excavator market is expected to continue growing due to the increasing number of indoor jobsites and rising labor costs in line with the country’s rapid urbanization,” said an executive from Doosan Bobcat. “With China as its production base, Doosan Bobcat plans to continue expanding its sales in other emerging markets not only in Asia but also in Oceania and Latin America.”
Meanwhile, Doosan Bobcat has expanded its compact construction equipment business in China in recent years. In 2017, it kicked off the local production of its compact loader, Earthforce, targeting the Chinese market in particular, while in 2019 it began producing its smallest loader, the S70, in China to meet the particular demands of the market.
▲Doosan Bobcat had kicked off the production of compact excavators (1-2 ton) in China