HDHyundai’s construction machinery sector is shifting its global strategy to emerging markets due to the long-term infrastructure construction slump in developed markets and China.
HD Hyundai Construction Machinery, which handles excavators and wheel loaders, HD Hyundai Infracore, which has been leading market expansion from the front, and HD Hyundai Site Solution, which handles industrial vehicles, will expand from the rear. Amid the slow recovery in demand in China, strategies are becoming clearer to make regions with high growth potential, such as India, Central and South America, Africa, the Middle East, and Southeast Asia, “post-China.”
According to the industry on the 17th, as of the third quarter of this year, sales of HD Hyundai Construction Machinery and HD Hyundai Infracore (excluding engines) accounted for 17% in North America, 16% in Europe, 10% in China, 12% in South Korea, and 45% in emerging markets. Emerging markets’ share rose steadily from 23% in 2020 to 45% this year, while China’s share fell from 38% to 10% over the same period.
Among emerging countries, India maintains a top-class position for 20-ton medium-sized hydraulic excavators, and in Brazil, HD Hyundai Construction Machinery and HD Hyundai Infracore have a combined market share of approximately 10%, forming the top market.
Its presence is also noticeable in Africa. In the region, especially in Ethiopia, HD Hyundai Infracore’s 36-ton excavator is synonymous with large equipment. While Japanese and Chinese companies have very high prices, HD Hyundai has solidified its position in the market based on competitive quality and service.
It is also expanding rapidly in the Middle East and Southeast Asia. In Saudi Arabia, new urban development projects including Neom are in full swing, and the demand for large excavators and loaders is steadily increasing, and HD Hyundai Infracore is strengthening its market dominance with its strong Chinese brand. Indonesia is a region where demand for medium- and large-sized excavators is rapidly increasing due to the new capital relocation plan and nickel mine development, and HD Hyundai is increasing its influence by expanding the supply of large mining equipment.
However, some analysts point out that the company’s China operations are in a phase of “strategic realignment” rather than downsizing. In April of this year, HD Hyundai ceased operations at HD Hyundai Construction Machinery’s small and medium-sized construction factories and consolidated production at HD Hyundai Infracore Yantai Factory. This is a measure to increase cost competitiveness and product responsiveness by integrating production, procurement, and logistics.
Additionally, the industrial vehicle sector is also supporting the expansion of emerging markets. HD Hyundai Site Solutions recently received an order for 230 electric trams from Polar Group, Venezuela’s largest food company. The contract is worth more than 10 billion won, making it the largest electric truck supply contract ever concluded by HD Hyundai Site Solutions in Latin America.
Analysts point out that HD Hyundai Chairman Jeong Ki-sung’s “field-oriented management” attitude is also contributing to the expansion of the construction machinery sector. Chairman Jeong visited the HD Hyundai Construction Machinery Global Education Center in Eumseong City, North Chungcheong Province on the 12th, and encouraged the athletes in the heavy equipment maintenance field of the 2026 International Functional Olympics. This was his first visit to a construction equipment site since he was co-chairman of HD Hyundai Site Solutions, and it is said that the organization has strengthened its unity in preparation for the launch of the integrated corporation next year.
HD Hyundai plans to officially launch the new “HD Construction Machinery,” which integrates HD Hyundai Construction Machinery and HD Hyundai Infracore, in January next year, and plans to accelerate the reorganization of its global production and procurement system and the strengthening of its overseas sales network. In his recent inaugural message, Chairman Chung said, “By integrating the two companies, we will actively explore new markets such as India, Brazil, and Australia.”
(Reporter Park Seung-joo)
This article was translated by GripLabs Mingo AI.
