According to the statistical data collected by China Construction Machinery Association (CCMA), the overall forklift sales amount on the world market in the first half of 2011 reached 461,101 sets, realizing a year-on-year increase of 34.06%, among which the forklift sales amount in China in this period was up to 128,209 sets with a year-on-year increase of 35.48%, making the country continue to be the largest forklift market in the whole world. Chinese forklift enterprises were experiencing the hottest records of marketing and sales, and were also sparing no efforts to improve the images of their own brands.

•Hot Market

It was informed that in recent years, the forklift industry in China experienced a fast development. Although it was impacted a lot by the global financial crisis and the forklift sales on the domestic market in China dropped sharply in the first half of 2009, it began to recover at a fast speed in the second half year. A research report once pointed out that the increasing rate of the forklift sales in China was as high as 62%, and 230,000 sets of forklifts (including the export volume) were sold in China in 2010, which was the first time to exceed 200,000 sets. During the period of the eleventh five-year plan, the annual average increasing rate of forklift sales reached about 25%. At present, the forklift sales in China occupied more than one quarter of the total sales amount in the world and the market was more perspective than expectation.

Facing with such a hopeful market situation, forklift enterprises in China continued to upgrade their technology and strengthen the development of new products, entering high-end forklift market with quality and innovative forklift products. Meanwhile, the foreign-funded forklift enterprises also fastened their step to conduct localized production. Even Nissan forklift, which had little advantages in terms of production scope or technology on the Chinese market, announced this year that they planed to produce forklifts in China since November, targeting at the profitable forklift market in China.

An analyst in China Construction Machinery Association told China United Business News that the forklift industry in China was still staying in the growing period, during which most of the domestic manufacturers targeted their forklift products at the low and medium markets and only a few of the forklift manufacturers truly mastered the core technology and innovative capacity to develop new forklifts. However, the domestic forklift brands still occupied most of the market shares in China relying on the advantages in terms of price, quality and after sales service. 

In the list of 2010 World Top 20 Forklift Suppliers issued by Modern Material Handling (MMH), there were 3 Chinese forklift manufacturers shining to the whole industry. The No.1 forklift manufacturer Anhui Forklift Group (HELI, Stock Code: 600671) was ranking at No. 6 on the list with global sales revenue up to 668 million dollars in 2009 fiscal year, and Zhejiang Hangcha at No.15 with sales revenue of 251 million dollars, Hytsu Group at No.19 with sales revenue of 86 million dollars. 

In the first half of 2011, Anhui Forklift Group (HELI) sold more than 40,000 sets of forklifts, increasing 42.2% in terms of sales revenue than the same period last year. As the forklift enterprises in China enjoyed the advantages lying in price, quality, locale and after sales, the foreign forklift brands had to cut their price down and took related measures to fasten the development process of localized market.

Jerry Hu, the Chairman of the Board of Hytsu Group, said that the price competition among domestic forklift brands was not favorable for the development of Chinese market in a long term. In his opinion, the only way to win more market shares lied in improving the quality of the forklifts. Nowadays, foreign forklift brands including Komatsu, Caterpillar, Toyota, Linde, Kion, Junheinrich and Mitsubishi had occupied a part of the market in China.

Along with the increasing demand on domestic forklift market and the emergence of rental agreements with banks, foreign forklift enterprises began to enhance their cooperation with forklift enterprises in China in recent years. Nissan forklifts, entering Chinese market for nearly ten years and owning relatively few market shares, planned to conduct their localized production in 2011 so as to reduce the production cost.

•More Products To Go High-end

As the process of mechanization and automatics fastened the developing pace, the increase of domestic labor cost stimulated the demands of forklifts, and the factories and warehouses intended to reduce the labor costs through using more forklifts, which enabled the further expansion of forklift market in China.

The person in charge of Nissan forklifts told the media that the operators should fully consider the market features of China and stuck to the market demands when developing new products so as to live on the Chinese market. Against to the fact that China had become one of the largest forklift markets in the world, the competitive force of Nissan forklifts manufactured in Japan was reduced due to the appreciation of Yen, increase of manual costs, high taxation and high electricity price. In order to shorten the delivery period and also to reduce the price, Nissan Forklift finally decided to sell forklifts produced in domestic China since November in 2011. Actually it was not only Nissan Forklift; several other famous foreign forklift brands also had the intention and plan to enhance the localized production in China.

Under such situation that the entrance of conventional foreign brands into China and the fast development of domestic forklift brands, the competition on the forklift market in China would become fiercer. In recent years, the leading forklift enterprise Anhui Forklift Group started to forcefully adjust the product structure and focused on improving the production capacity of key parts, able to produce 200,000 tons of casting structures, 600,000 sets of oil cylinders and 100,000 sets of steering axles. The company also had the advantages on the aspects of transmission system, hydraulic system and working devices as the products could be interchanged with the spare parts of the same category made abroad, not only meeting the demands of producing matching parts, but also providing maintenance service for the customers. At the same time, domestic forklift brands paid more attention to the production quality and after sales service, and some of them began to introduce quality control systems from overseas.

At present, while expanding their market shares in China, domestic forklift enterprises started to export forklift products in batches and took part in the international competition. Chinese forklift enterprises now had stood steadily on the markets in India and Latin America. It was only Anhui Forklift Group that realized to export more than 10,000 sets of forklift in the first half of 2011.

Moreover, Chinese forklift enterprises needed to satisfy the requirements in terms of energy saving and environmental protection on American and European markets and to strengthen their core technologies of forklift development, aiming at building more strong forklift brands and competing on the high-end markets in the global world.

About Anhui Heli

One of the ten largest manufacturers of forklifts in the world, we are also engaged in the production and sales of various construction vehicles, mining machinery, and related spare parts. Furthermore, we are also involved in the outputting of metal materials, petrochemicals (excluding dangerous chemicals), electronic products, electric devices and rubber products.

Having received government investment and support, in addition to cooperating with a Japanese forklift manufacturer in the past, our products meet international quality standards. In 1999 we received ISO9001 certification for our management system, with our products having been evaluated as compliant with European 'CE'quality and safety regulations.

Marketed under our proprietary "HELI" brand, our forklifts are suitable for use in various applications. These include ports and harbors, airports, construction sites, shopping malls, warehouses, and for short distance transportation. With capabilities for forklift truck design, manufacturing, testing and inspection that lead the domestic market, we are the sole company in this field to be listed on the Shanghai Stock Exchange.

With the only national-level forklift R&D center in China, we can also provide scientific consultancy for the domestic materials handling industry. If you are interested in any of our series, please feel welcome to contact us. We are looking forward to working together with your company for future cooperation.