The growth rate of production of Russian road equipment has declined
Source：Vedomosti
From：Taiwan Trade Center, Moscow
Update Time：2024/01/07
The production of domestic road construction equipment for the first nine months of 2023 increased by 22% in monetary terms compared to the same period last year to 65.2 billion rubles. Such information is provided in the statistics of the Rosspetsmash Association, which Vedomosti has. The Association collects data from companies that produce 80% of all road-construction equipment in Russia.
Rosspetsmash keeps statistics quarterly. In the first half of this year, the total production of road construction equipment by Russian factories increased by 31% to 44 billion rubles. In the first quarter, the growth amounted to 30% to 19.9 billion rubles.
At the same time, shipments of equipment to the domestic market are steadily growing this year: in the first quarter by 24% in annual terms (17.7 billion rubles), in the first half of the year – by 21% (37 billion rubles), and in nine months they increased by 22% to 59 billion rubles, follows from the data of the association.
In quantitative terms, for the three quarters of 2023, shipments of pipe-laying cranes increased by 4 times, excavators – almost twice, road rollers – by 22%, cranes-manipulators – by 21%, mini-loaders – by 16%, front loaders – by 6%, backhoe loaders - by 1.6%., cites data from Rosspetsmash. The decrease in deliveries during the reporting period was observed in the segment of graders (by 27%), telescopic loaders (21%), tracked bulldozers (19%), cranes (1.6%).
Russian machine builders also traditionally complain about high competition from importers. "Aggressive imports" negatively affect the production rates of the Russian road-construction equipment and has already led to a decrease in sales for certain key types of machines, the association notes. According to its calculations, the volume of imports of road-construction equipment in monetary terms from January to July 2023 increased by 66% to 254 billion rubles.
Foreign machinery dominates in such segments as graders, excavators, road rollers, front loaders, asphalt mixing plants. The share of imports in the supply of this equipment varies in the range from 65 to 94%, explains Rosspetsmash.
In the summer, the Ministry of Transport even proposed to establish a cut-off requirement from 2025, which will not allow construction companies to public procurement if they own less than 30% of Russian-made equipment.
It is assumed that this share will grow by several percentage points annually and will reach 60% by 2030.
Rosspetsmash also mentions among the problems the lack of production in Russia of a number of key components and speaks of the need for state support of the industry through grants and indexation of scrap collection (a one-time payment made when releasing or importing equipment). Since 2023, the rates of scrap collection for road-construction equipment and special equipment have already increased by 1.2–5 times, depending on the type of machines. For its unofficial compensation to domestic producers, 12.5 billion rubles of state subsidies are provided for this year, importers are not entitled to subsidies.
The decrease in the growth rate of road-construction equipment production, which occurred in the third quarter, is also due to the higher base of last year, says Denis Kudryavtsev, general director of the specialized association "Spetsavtoprom". According to him, after the start of the jump in exchange rates, many contracts for the supply of equipment were terminated, as a result of which production significantly sank. The recovery began in August 2022 and continued until the end of the year, so it is not necessary to expect high production growth rates until the end of the year in 2023, the interlocutor believes.
Source: https://www.vedomosti.ru/business/articles/2023/10/20/1001596-tempi-rosta-proizvodstva-rossiiskoi-dorozhnoi-tehniki-poshli-na-spad