Hidden Worries and Variables in the Domestic Used Construction Machinery Market

In the past 10 years, the construction machinery industry in China has developed rapidly. The sales of foreign-owned local brand equipment have increased by leaps and bounds, and China has become a big producer and seller of construction machinery. Accompanied by this, second-hand construction machinery has been widely recognized by users for its features of low price and high cost performance, and the social demand has soared. After several years of development, it has shown a trend of vigorous development.

Judging from the current domestic market development trend, used construction machinery mainly includes the following categories: The first category is imported second-hand construction machinery, mainly imported equipment from Japan; the second is used construction machinery leased out; The third category is used machinery that has been used in the market once or several times, and the fourth type is used machinery that has been refurbished. In addition to this, many poor-quality assembly equipment also occupy a certain market share. Such equipment is often a private transaction and is introduced by acquaintances or friends in the circle. Some users sell the equipment to a so-called middleman when the equipment failure rate is high. After the middlemen make minor repairs or do not sell at all, they earn a price difference, and some are even scrapped and assembled by the end-of-life equipment.

According to the statistics provided by the National Equipment Rental and Used Equipment Professional Committee, there are currently nearly 800 used equipment markets in China, and there are as many as 28 types of main products divided into 26 provinces and more than 250 cities. By the end of 2010, the transaction volume of used construction machinery nationwide had exceeded 100 billion yuan, and the trading volume exceeded 5 million units.

Hidden fears behind flashiness According to the above statistics, the domestic second-hand construction machinery market presents a prosperous scene of supply and demand. However, it is difficult to conceal its problems behind the flashy surface of the market. If these problems are not solved, it is difficult for secondary construction machinery to form a large-scale industrial chain.

Judging from the current market development situation, domestic second-hand construction machinery presents two major characteristics. First of all, the huge market demand for second-hand construction machinery obviously exists; secondly, the market order of domestic second-hand construction machinery is chaotic, and corresponding regulatory and regulatory measures are lacking.

Non-standard transactions According to related statistics, the current taxation standards for second-hand construction machinery trade are not uniform, and basically all are implemented in accordance with local policies, but some are levied according to value-added tax, and some are collected according to business tax, the highest is 17%. Only 2% of the tax rates vary widely. In order to reduce costs, both parties to the transaction, nearly 80% of the transactions are often carried out in private by cash, leading to the loss of taxes and fees.

In the actual transaction process, buyers often rely on their own buying experience or the opinions provided by the distributors to negotiate the price of the equipment with the seller, and basically do not sign a sales service contract. Once the transaction is completed, the dealer does not provide the invoice. There are three shortcomings in this type of transaction: First, the actual price of used construction machinery is not transparent and it is difficult to guarantee the interests of buyers. Many devices fail when they reach the user. Such transactions often do not include after-sales service commitments, the cost of repairs and accessories for used construction machinery is high, and the efficiency of equipment operations is low. The second is that the seller does not have relevant purchase receipts and related information of the equipment, which is not conducive to the maintenance of later equipment. Third, it is difficult for industry statistical agencies to obtain real transaction data.

The most critical issue in assessing the use of non-standard second-hand construction machinery to enter the market is how to identify the quality and formulate the equipment guide price. However, so far, a set of scientific evaluation criteria for second-hand construction machinery has not yet been formed in the country, and the standard used to measure the value of second-hand construction machinery is still blank.

Due to the lack of standards for refurbishment and remanufacturing of second-hand construction machinery, most of the operators of second-hand construction machinery operators can only rely on their own operating experience and customer preferences, combined with the maintenance data of various brand manufacturers, to repair and maintain the equipment. Because there is no unified national standard for reference, in the process of maintenance and repair, quality problems will inevitably arise, leading some users to distrust the businesses and used construction machinery.

The delay in the introduction of national standards for second-hand construction machinery has greatly hampered the development of China's remanufacturing industry. Because the company is in urgent need of a large number of second-hand construction machinery as its raw material while developing the remanufacturing industry, and due to the lack of corresponding normative national standards on the market, the two sides have great differences in product identification, and thus affect the second-hand construction machinery transaction. The orderly flow.

In addition, due to the lack of export standards for used construction machinery, domestic commercial households are currently mainly engaged in importing second-hand construction machinery and domestically-built second-hand construction machinery. Although there are many types of products, they have only a single mode of operation and a narrow range of models.

The lack of a unified market to regulate the overall layout of the market lacks overall planning, resulting in the blind construction of second-hand equipment trading market. Many market conditions are harsh and the environment is harsh, affecting the orderly and harmonious development of the market. In addition, due to the lack of the necessary property registration system, the use of second-hand construction machinery smuggled, increased trading risks. Especially for construction machinery with credit sales such as bank mortgages, financial leasing, etc., during the contract period, the lessee will transfer the second-hand construction machinery market without property rights, thereby causing damage to the construction machinery property owner.

Standardization, ageing, and scale are the trend of the technology and the flow of standardization From the point of view of the global second-hand construction machinery trading market, second-hand equipment operators will adopt a set of more standardized assessment methods to evaluate the value of equipment. Buyers and sellers generally adopt traditional bargaining. Trading and auctioning methods. As China currently does not have an environment for equipment auctions, in order to ensure the legitimate rights and interests of users and the transparency of transactions, it is urgent to formulate technologies and circulation standards that suit China's national conditions.

First of all, the standard should mainly require and regulate the safety, environmental protection, usability, and quality assurance of used equipment. At the same time, it also requires the training of a large number of qualified professionals for used equipment, and fairness based on technical specifications and evaluation standards. , fair product technical assessment, product valuation, trading agency and other related work. Second, second-hand equipment technology and distribution standards should first regulate the dealer market access system. All dealers engaged in second-hand equipment marketing activities should have certain qualifications, economic strength, and professional knowledge, and should also have a certain degree of credit. Again, it should be possible to establish a credit system for used equipment operators based on standards. It is necessary to formulate enterprise credit standards, establish a stringent operator credit file, record the credit status of each transaction of the operator in detail, and evaluate the operator's credit rating based on these records. Finally, industry organizations should be able to use this as a basis to establish a system of explicit information on used equipment, improve market trading rules, strengthen the information disclosure of used equipment, and publicize the system so as to promote the healthy development of the market.

In May 2009, the National Committee of Equipment Leasing and Used Equipment Professionals completed the formulation and approval of the "General Rules for the Use of Second-hand Equipment Circulation Specifications", which was formally promulgated and implemented on March 1, 2010, and began in September 2010. The drafting of the four circulation technical standards such as “Used excavators, loaders, concrete pump trucks, and truck cranes” has marked the development of second-hand construction machinery in China to standardization and maturation, and the formulation of market and technical specifications for second-hand construction machinery. It will help improve the construction of its own industrial chain, and it is more conducive to the participation of domestic second-hand construction machinery in the global circulation field.

In order to further increase market share, more and more OEMs and agents will invest new equipment in leasing services. In order to increase the overall profitability of the equipment and take into account the exit channels of used equipment, it is usually updated in 2 to 3 years. Due to its stable quality and low failure rate, this part of equipment has become a new force in the used equipment market.

The scale of operations In recent years, the progress of the secondary construction machinery market towards standardization has been very obvious, especially with the constant involvement of professional construction machinery manufacturing companies, which has led to a major step forward in the standardization process of domestic second-hand construction machinery. With the development of second-hand construction machinery technology and circulation standards in China, and the gradual loss of competitive advantages of second-hand second-hand construction machinery, equipment manufacturers with strong capital and technical strength have already adopted second-hand construction machinery as an industrialized operation, and have started to build different sizes. The equipment refurbishment factories with different technical strengths and the agents with certain strengths rely on the main engine factory as support and backing, and they also actively invest in the used equipment industry. The second-hand market of construction machinery in the future will develop in the direction of large-scale operations of recycling, processing (maintenance, renovation, remanufacturing), distribution, and import and export of used equipment.

Oxygen Sensor For Volvo

Oxygen Sensor For Volvo,Volvo Oxygen Sensor,Volvo Lambda Sensor,Volvo O2 Sensor

RUIAN XIANGTAI AUTOMOTIVE PARTS CO ., LTD , https://www.xiangtaioxygensensor.com