▶ Signing of a contract with Lotte Rental for 60 mini excavators, diversifying sales channels by supplying to rental markets

▶ Contracts for more than 200 mini excavators in just 2 months this year, already more than half of the annual sales in the Korean market last year

▶ Korea’s mini excavator market grew by 15% last year; “We will change the market with differentiated customer service.”

Hyundai Doosan Infracore is actively targeting Korea’s mini excavator (weighing 6 tons or less) market, which is rapidly growing due to diversifying use.

Hyundai Genuine (the holding company of Hyundai Heavy Industries Group’s construction equipment unit) subsidiary Hyundai Doosan Infracore announced that it recently signed a contract with Lotte Rental to supply 60 mini excavators, including 40 1.7-ton (DX17Z-5) units, 10 3-ton (DX30Z-7) units, and 10 3.5-ton (DX35Z-7) units. The contract serves as the first opportunity for Hyundai Doosan Infracore to supply its excavators to the rental market.

Hyundai Doosan Infracore plans to increase sales through this contract by diversifying its sales channels in Korea’s rapidly growing mini excavator market. Lotte Rental is also expanding its business area to excavator rental in addition to existing automobiles, home appliances, and forklifts. 

The 1.7-ton mini excavator supplied by Hyundai Doosan Infracore is the most popular model, accounting for 40% of Korea’s mini excavator market. Compared to competing products, it has strengths in excavation power, turning speed, and working radius. 

In particular, the equipment width of only 950 mm enables it to work in narrow areas, and the crawler (wheel tied with a belt) width extended to up to 1360 mm makes it easy to maintain balance during work as the lower part is stably fixed.

After introducing its first product to the mini excavator market in 2017, Hyundai Doosan Infracore has gradually increased its sales volume by expanding the lineup through new product launches and improving services. It already sold more than 200 mini excavators in just 2 months this year (January to February), surpassing half of last year's annual sales (351 units).

Hyundai Doosan Infracore launched two new mini excavator models (DX30Z-7 and DX35Z-7) that feature a high-output engine developed in Korea to improve performance significantly and for better conveniences like cockpit cabin options and installation of heater and air conditioner. Moreover, it offers a special warranty service of 3 years and 6,000 hours for key parts such as engines and hydraulics, which has received enthusiastic reviews from customers.

“The mini excavator market is rapidly growing as it accounts for 50% of the total excavator market in Korea. We will change the landscape of Korea’s mini excavator market, where the global manufacturers are strong, with differentiated aftersales service,” a Hyundai Doosan Infracore official said.

The demand for mini excavators by farms and orchards has increased in Korea due to rising labor costs and shortage of labor force. Its global sales have also increased as the mini excavator’s range of use has expanded in urbanized Europe and North America.

According to the Korea Construction Equipment Manufacturers’ Association, 5,500 mini excavators were sold in Korea last year—a 15% n increase compared to 2020—and the global market also showed growth with about 330,000 units (source: Off-Highway Research) sold worldwide last year, a 9% increase from 2020.

■ Photo: Hyundai Doosan Infracore’s new mini excavator model DX35Z-7 released this year