“Demand for big machines is growing.”

02 Jan 2019 CW Team

After China, India is considered the single big market for Liugong for construction equipment. Zeng Guang’an, Chairman, Guanxi Liugong Group Co, shares more on the company’s plans and market outlook…

One pathbreaking offering: India is an important market for Liugong globally. We are offering new machines and solutions in the excavators and wheel loader market in India.

Demand drivers in 2019: In infrastructure development, roads contributes to major growth.

And a lot of equipment being used, such as excavators, backhoe loaders, motor graders, rollers, etc, will have more demand. Mining and quarrying will also see growth owing to more demand for aggregates and other raw materials in road construction. Here, the big mining machines will see some growth in demand.

Announcement contributing to the company’s growth in 2018: Liugong is increasing production of construction and mining machinery as demand is about to pick up in the current year and going forward.

Challenge for the company in 2019: The major challenge we are facing is importing components from abroad, including engines, which keeps the production cost higher. This has been a major challenge for every manufacturer.

With more and more production facilities being opened up, getting a professionally qualified and trained workforce is also a challenge.

Key strategy to success in 2019: Our strategy to success is based on four key principles: Cost-effective operations, quality of machines, people, and cooperation, as we need good vendors and dealers for a successful business.

Recommendation for growth of the construction equipment market: Good technology and better after-sales support to customers are important for the growth of the construction equipment market.

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