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Home / ANALYSIS / Getting flexible: Finance and rent models are influencing the Gulf’s excavator purchases

Getting flexible: Finance and rent models are influencing the Gulf’s excavator purchases

by John Bambridge on Nov 7, 2017


The 20-tonne CX210B is the best-selling model for Case Construction Equipment in the Middle East region.
The 20-tonne CX210B is the best-selling model for Case Construction Equipment in the Middle East region.

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Back to basics

In terms of pure product, Liebherr has also unveiled its first 20-tonne to 25-tonne units in a new series of crawler excavators optimised for emerging markets with lower emissions regulations. Initially announced at Bauma 2016, the R920, R22 and R924 models also boast a simplified maintenance concept engineered to increase machine availability.

In February, Caterpillar also launched the Cat 320D2 GC excavator, a Tier III Cat 320D2  equipped with an electronically controlled Cat C4.4 ACERT engine that lowers fuel use by as much as 17% compared to the Cat C7.1 engine in the previous 320 model. An ‘automatic engine control’ system meanwhile reduces engine speed when full power is not required, saving fuel and reducing operating costs even further by using 30% less oil during routine oil changes than before.

Caterpillar expects strong sales in the Gulf, where sales of its predecessor and associated units have been strong for years, as Al Bahar’s Ismail adds: “The 20-tonne 320D2L, as well as the 40-tonne 340D2L was already designed and built according to the voice of customers in our region, and to fulfil the need of our customers. Over the years, customers have come to value the machine and be impressed by the specs, performance, reliability, durability and serviceability.”

Kobelco will also be launching a range of more fuel efficient excavators in 2018.

As for Case, Invernizzi notes: “The 20 tonne class are still the largest selling products in the region, while the Case CX210B, which sits competitively in this market, is our best-selling model. However, there is movement with heavier excavators in the 30-, 40- and 50-tonne classes.”

Hitachi’s Van Bakergem, notes: “The 20- and 30-tonne excavators are the bread and butter of our businesses, but we recognise a growing demand for mini excavators and larger specification excavators.”

He adds: “Our dealers within the region also carry a strong stock of spare parts, and we are involved in pro-active maintenance support programmes. We have the back up and support for tens of thousands of line items — at an availability of around 95% — and this is being recognised by end users and will form the backbone of our future sales.”

At Hyundai, Kim comments: “Excavators ranging from 22 tonnes to 33 tonnes traditionally make up about 50% of regional excavator markets, and we see that trend might continue to remain for a while.”

Hyundai is also doing good business shipping its Korean excavators and breakers as a package, with the combination making up a greater portion of the OEM’s excavators sales in this region compared to others.

LiuGong’ Zhu adds: “The 20- to 25-tonne and 30- to 40-tonne range account for around 80% of our market share, and we expect the same in the future.”

Volvo CE’s Fidan also sees a future for increasingly sophisticated telematics. He adds: “Telematics is going to become increasingly important. It is not only about connectivity to the machine, but receiving data, analysing it, and using that to improve the efficiency of the machine and jobsite.”



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