GLOBALtrends
MORE SIGNS OF POSITIVE FUTURE
PROSPECTS FOR INDIA
India: Liugong Wheeled Loader Sales, 2004-2008
2004
2005
2006
2007
2008
Units
21
47
142
176
242
Market Share
2%
4%
7%
7%
10%
BY DAVID PHILLIPS We have stated previously that Off-Highway Research be- lieves that the medium- and
long-term prospects in India are quite
positive. Going beyond the statistics of
machine sales and infrastructure requirements, one can also look at what
some companies are doing as further
evidence that India will continue to play
a growing role in the global economy.
Perhaps one of the most significant
examples came in mid-2009 when
Liugong India Pvt. Ltd. (LIPL), the wholly owned subsidiary of Guangxi Liugong
DIESEL PROGRESS INTERNATIONAL EDITION
David Phillips is managing director of
Off-Highway Research,
a London-based management
consultancy that specializes in the
research and analysis of international
construction equipment markets.
Phone: ( 44) 020 7404 1128;
E-mail: mail@offhighway.co.uk
Machinery Co. Ltd., became the first
Chinese construction equipment manufacturer to establish a production facility in India. The plant, located at the
Pithampur industrial area, about 20 km
from the city of Indore, was inaugurated
in early July by the chief minister of
Madhya Pradesh. The ceremony was
attended by government officials from
China and India, senior officials from
Guangxi Liugong, employees of
Liugong India, dealers, suppliers and
prominent customers.
Founded in 1958, Guangxi Liugong
Machinery Co. Ltd. is well known in
China for its construction equipment,
especially its wheeled loaders. It is
now the second largest producer of
wheeled loaders in the world and the
largest in value terms. The company
has a dealer network spread over 80
countries with offices in North America,
South America, Australia and India. Its
current product line also includes
hydraulic excavators, road machinery,
compaction equipment, mobile cranes,
crawler dozers and forklift trucks.
Liugong now has 15 production facilities in China employing more than
9600 people.
Liugong entered the Indian market
in 2002 with its wheeled loaders and
sold 22 units in 2003. Determined
to capture a larger market share, it
aggressively promoted its 164 kW
CLG856 model with a fair degree of
success. In 2006, Liugong emerged as
the fourth largest supplier of wheeled
loaders in the country, capturing a 7%
market share. It has retained that position ever since and increased its market share to 10% in 2008.
Sensing great potential for its products,
the company established LIPL in August
2007 with its head office in Delhi, India, and
also introduced other product lines such as
hydraulic excavators, motor graders and
compaction equipment to the market.
Conscious of the fact that the true potential of the market could only be exploited by
establishing a local manufacturing facility,
the decision for a major long-term investment was made during the visit of
Liugong’s president to India in 2007, and a
number of potential sites were reviewed. In
the end, Indore was chosen because of its
central position, which will greatly aid logistics, and a welcoming local government.
The agreement for the project was finalized
