Constructionshows
Since 1985, Hyundai has been delivering construction equipment and industrial vehicles to customers around the world. Today, the company’s state-of the-art automated manufacturing facilities in Korea, China, India, and Brazil produce equipment that is sold and serviced through a global network of over 480 dealers in some 134 countries worldwide.
Hyundai – 2013 Overview
The global construction market slowed in 2013 as economic uncertainty in the US and Europe continued and China maintained its tight credit policies to keep growth in check. In emerging markets such as the Middle East, Brazil, Russia, and Africa, falling international raw materials prices combined with a market slump in the second half of the year and political and policy obstacles dampened demand.
Looking at construction industry growth by region, the second half of the year brought a gradual recovery in the US as key economic indicators such as housing demand and individual consumption showed signs of improvement. While government policies and tight credit delayed recovery in China’s construction market, concerns of an economic hard landing eased as the market remained stable. In Brazil, demand for equipment fell as the global economic slowdown impacted major development and private sector projects.
Hyundai – 2013 Review
In 2013, HHI new orders reached USD 2.5 billion. This is roughly an 11% decrease from 2012 which was primarily due to stagnant growth in the global market, a steep drop in China, and increasing competition from Japanese makers, who benefitted from the weak yen. Despite this increased competition, HHI continued to boost its market share by reducing costs and strengthening its sales organisation. Hyundai’s excavator business continued to lead its market segment in 10 countries across the Middle East, Africa, and CIS by delivering customised equipment to meet customer needs as well as, what Hyundai say, a superior customer service. Its forklift business performed slightly worse than the previous year due to the weak yen.
Hyundai – 2014 Outlook
HHI expect the global construction market will be somewhat positive in 2014. In China, market growth is expected to be stable as government policy continues to keep a tight rein on economic growth. In the US, uncertainty continues to linger in the wake of budget sequestration and the government shutdown in 2013. However steadily improving demand for housing and individual consumption are expected to keep the market growing at a similar pace.
In emerging markets, decreased liquidity as the US scales back its quantitative easing policy is projected to dampen market demand in the first half, but a gradual recovery is expected in the second half. In Brazil, public tender purchases focusing primarily on small-sized equipment are expected to increase as part of economic stimulus measures as expectations of market recovery rise in the lead-up to the 2014 FIFA World Cup and 2016 Rio Olympic Games over the next two years. In Europe, the ongoing financial challenges that nations in southern Europe face make it unlikely that the equipment market will recover in the near future.
HHI’s global new order target for 2014 is USD 2.8 billion as the company continue to strengthen its global sales network and enhance service and support in pursuit of greater market share. The start-up of joint venture engine maker Hyundai Cummins Engine Co. in Daegu, Korea in May 2014 will provide HHI with a stable supply of high-quality engines and service capabilities that will further enhance customer satisfaction. The company is also working to improve its price competitiveness and sales capabilities through a financing program and product support policies to counter the pricing advantage Japanese makers currently have.
More generally, Hyundai say it will continue to invest in its products, develop specialised equipment for key markets, and deliver superior customer service to improve our competitiveness. HHI believe that developing next-generation equipment that brings together the latest advances in information technology to enhance efficiency and security and eco-friendly technology to meet the high environmental standards set in Europe and North America is key to meeting the changing needs of global customers and unlocking opportunities for growth worldwide in the years ahead.
Hyundai – 2013 Order Breakdown:
Excavators: 55%
Forklifts: 16%
Wheel Loaders: 11%
Others: 10%
CKD Exports 8%
Hyundai- Orders in USD Millions
2011 – 2,734
2012 – 2,773
2013 – 2,469
Download Hyundai Annual Report 2013 here.
Source: Hyundai Heavy Industries Europe
