THE RISE OF CHINESE MAKES IN THE MATERIAL HANDLING INDUSTRY

Since 2017, the Chinese regional market has been experiencing remarkable growth, with an annual increase of 8.5%, twice the rate observed in most international parts markets. Notably, the market dedicated to material handling equipment of Chinese origin reached an approximate value of 395 million euros in 2022 and is expected to reach 574 million euros by 2024.
 

These aren’t the only striking figures. Market data shows that over the past three years, sales of Chinese material handling equipment parts have surged by 24% a year. Emerging countries, in particular, have embraced Chinese-made machines as a cost-effective solution for maintaining efficient production operations. In some regions, these parts have already captured a significant market share, accounting for 31% in South America, 29% in the META region (Middle East, Turkey, and Africa), and 25% in the Asia-Pacific region. This is also backed up by our internal data.
 

However, it is essential to recognise that the rise of Chinese material handling equipment is not limited to emerging countries. Major multinationals like Tesla have also begun choosing Hangcha over their traditional German makes for their operations, demonstrating the trustworthiness and quality of Chinese-made machines.

Chinese-made parts are flowing into the global market in three distinct streams.

These machines are assembled almost entirely from Chinese parts, although there are some exceptions where engine parts from other makes are incorporated to optimise key functions. As Chinese parts are often more cost-efficient compared to their counterparts, the total cost of the machine is lower. The perception that Chinese forklifts have a slightly shorter average lifespan is more and more proving to be false. The quality of Chinese-made machines has improved significantly.

These forklifts are produced by Chinese manufacturers but are sold by other retailers under their own brand name. Apart from the branding, the machines are the same. Some private labels use the same part references as the Original Equipment Manufacturer (OEM); others use their own reference numbers and manuals. Naturally, this can lead to confusion when sourcing replacement parts. So, it takes an experienced parts supplier like TVH to guide customers to the correct Chinese parts.

Chinese forklift parts also enter the market by being incorporated into machines made by other manufacturers. In these cases, higher-quality parts are selected for the most critical forklift components and Chinese parts are used for the rest of the machine assembly. For example, a German manufacturer uses components produced by Heli in forklifts sold under their own brand. Similarly, a French manufacturer has a joint venture with Hangcha, in which Chinese drive axles, rear axles, and transmissions are incorporated into its machines. This means that even if a customer has a German or French machine, they may need Chinese parts for repairs and maintenance.

To give our customers access to a wide range of Chinese forklift parts, TVH works with the largest manufacturers in China. We stock a high percentage of available SKUs from major makes like EP Equipment, Heli, Baoli, Noblelift, and Hangcha. Because of the high stock levels for these makes, we have no problem fulfilling orders for parts, providing a solution to the long lead times for sourcing them. And not only do we intend to keep increasing these numbers, but we are also actively looking to establish more partnerships with Chinese makes. This will ensure that TVH can offer the most comprehensive range of Chinese forklift parts.

Our collaboration with Chinese makes is not limited to forklifts, because TVH also has partnerships with Sinoboom and recently with Zoomlion MEWP. Turn to p. 32 to read all about this new partnership

The influx of Chinese forklift parts brings new choices and possibilities but also creates new challenges.

TVH’s look-up services are specialised in locating parts, whether or not they are already on our shelves. In many cases, we can use reference numbers to find the right products. But some Chinese parts are produced for multiple private labels, with multiple reference numbers for identical products. Moreover, some Chinese manufacturers use standards in which the same reference number can apply to more than 100 different parts. Getting the right information on the part is also often a challenge due to missing parts books.

Another challenge is that some Chinese forklift parts don’t meet the standards our customers expect and deserve. However, we want every part in our range to be the right part, and it has to be up to the task. Therefore, rigorous testing of new products is indispensable to TVH’s quality management (more about this on p. 6), which we also apply to Chinese forklift parts. If a part is not up to our standards, you won’t find it in our catalogues.

Occasionally, parts that arrive from Chinese makes are different from those expected. The products may be very similar but not quite right, or a product may have an old reference number even though it’s been improved or updated by the manufacturer. That is why we work closely with Chinese OEMs to ensure the parts we deliver are exactly what our customers need. Thanks to our ever-growing expertise in these matters, we can source and supply the right Chinese parts much more efficiently than customers can on their own.

The Chinese forklift parts market currently sits at 11% of the total market and is expected to grow to 17% by 2030. This makes expertise in liaising with Chinese manufacturers all the more important. To access forklift parts, customers need a reliable and trustworthy supplier. With over 50 years of experience in the forklift parts business, TVH is committed to fulfilling that role and helping our customers navigate the changing market.