Title: Why are excavators in Shanghai cheap? Revealing the four major reasons behind
Recently, the discussion on the entire network around the construction machinery market has increased, especially the phenomenon that excavator prices in Shanghai are significantly lower than those in other cities have attracted widespread attention. This article will use structured data to analyze this phenomenon for you from four dimensions: market supply and demand, cost structure, policy support and second-hand transactions.
1. Comparison of supply and demand relationships in Shanghai market (June 2024 data)
| City | Average price of new machines (10,000 yuan) | Stock (Taiwan) | Monthly transaction volume |
|---|---|---|---|
| Shanghai | 42.5 | 1,850 | 320 |
| Beijing | 48.2 | 1,200 | 280 |
| Guangzhou | 45.8 | 1,500 | 310 |
Data shows that the excavator inventory in Shanghai is 20%-35% higher than that in other first-tier cities, but the transaction volume has not increased year-on-year, and the imbalance in supply and demand directly leads to a price decline. Industry insiders pointed out that this is related to the recent phased adjustments of Shanghai's infrastructure projects.
2. Key indicators of cost advantage
| Cost items | Shanghai | National average |
|---|---|---|
| Logistics cost proportion | 5.2% | 8.7% |
| Warehousing fee (yuan/㎡/month) | 25 | 32 |
| Import tariff preferential range | 15%-20% | 10%-15% |
The policy dividends of the Shanghai Free Trade Zone have reduced tariffs on imported parts. Combined with the efficient logistics network, a single device can save about 38,000 yuan. In addition, the mature supporting industrial chain in the Yangtze River Delta further compresses production costs.
3. Comparison of policy subsidies (2024)
| Policy Type | Shanghai Standard | Other cities |
|---|---|---|
| New energy equipment subsidy | Purchase price 12% | 8%-10% |
| Old trade-in subsidy | Up to 50,000 yuan | 20,000-30,000 yuan |
| Technology upgrade rewards | 30,000 yuan per unit | 10,000-15,000 yuan |
Shanghai provides additional subsidies for equipment that meets the National IV emission standards and launches a "Three-Year Action Plan for Equipment Update", which is a direct driving force for the price decline. A brand dealer revealed: "Policy subsidies can cover more than 60% of the terminal price reduction space."
4. Second-hand market transaction data
| parameter | Shanghai | National average |
|---|---|---|
| Second-hand equipment circulation rate | 38% | 25% |
| 3-year depreciation rate | 45%-50% | 40%-45% |
| The proportion of cross-provincial transactions | 62% | 35% |
As the largest second-hand construction machinery distribution center in the country, Shanghai has an annual transaction volume of more than 20,000 units. High liquidity leads to the price of second-hand equipment 55%-60% lower than that of new machines, indirectly lowering the pricing range of new machines. The transaction price of some second-hand excavators from 2019 to 2021 has fallen below 200,000 yuan.
Industry forecast:According to the latest report of the Engineering Machinery Association, the price advantage in Shanghai is expected to continue until the third quarter of 2024. With the concentrated start of new infrastructure projects in July, the supply and demand relationship may gradually improve, but the annual price will still maintain a location advantage of 5%-8%. It is recommended that the purchaser focus on dealers in free trade zones such as Pudong and Lingang, which can usually provide additional local subsidies.
Source of this article: Construction Machinery Business Review (2024.6), Yangtze River Delta Equipment Trading Report, and Shanghai Municipal Commerce Commission’s public data. All price data are market quotations for 20-ton standard models, and the statistical period is from June 1 to 10, 2024.
check the details
check the details
en
