The market for backhoe loaders in Russia is extensive and finds

applications in various fields such as construction, public utilities, agriculture, and mining. The Fixed Assets magazine of Russia has invited industry experts to hear their views on the production, sales, and service of backhoe loaders under modern conditions. The experts are as follows:

- Igor Murashov, Technical Deputy General Manager of XCMG Russia.

- Andrey Zabarduyev, Head of Department of GRAND T Technical Center in Moscow.

- Renat Ibragimov, General Manager of TECHNOSIS Company in Russia.

- Dmitry Abramov, Purchasing Department Manager of Lingong Business of RBA Company in Russia.

Please briefly introduce your company first.

Igor Murashov (XCMG Russia): XCMG Russia is the official representative of XCMG Group and provides a full range of construction machinery to the Russian market, including backhoe loaders, and offers warranty and post-warranty services. Currently, we have started to receive the first orders for XCMG brand backhoe loaders, models XC8-S2570 with different sizes of tires and XC8-S3570 with the same size tires. At the same time, we are establishing the required inventory of consumables and spare parts.

Andrey Zabarduyev (GRAND T Technical Center): Our company focuses on selling and maintaining Weheavy brand backhoe loaders from Weichai. In our product line, there are models with different sizes of tires and models with the same size tires. Last year we sold 300 units, and this year we plan to sell no less than 600 units. Our backhoe loaders have established a reliable and cost-effective image in the market. Thanks to the simple and reliable structure, this machinery can withstand high-intensity loads and use a wide variety of attachments. Because the standard configuration is already equipped with double-flow hydraulic pipelines. The factory's production capacity can reach 3,000 backhoe loaders per year.

Renat Ibragimov (TECHNOSIS Company): Since 2013, our company has been engaged in the sales of road and construction special equipment from China and Turkey. We offer backhoe loaders in three price ranges: high-end (Turkish Pi Makina), mid-range (Chinese Xiamen XGMA), and economy (Chinese Shandong Weimeng SHANMON). We provide backhoe loaders with different sizes of tires and the same size tires. There is no problem in supply - currently our Chinese and Turkish partners can fully meet market demand. Sales also show a continuous growth trend.

Dmitry Abramov (Lingong business of RBA Company): RBA Company is the exclusive agent of Lingong LGCE brand in Russia, responsible for introducing and selling the brand's equipment and spare parts and providing after-sales service. The LGCE factory was established in 1972. For nearly 20 years, it has been a member of a globally leading European construction equipment production group, which has had a positive impact on the quality of equipment produced by LGCE. The main business of Lingong Group is to produce loaders and excavators. In addition, the LGCE factory also produces graders, vibratory rollers, and backhoe loaders. Currently, we provide a backhoe loader - LGCE B877F to the Russian market.

Market situation of backhoe loaders in Russia: Is there a shortage of machines felt, and which types of equipment are in short supply?

Andrey Zabarduyev (GRAND T Technical Center): There is a shortage of high-quality machines with reasonable prices felt.

Renat Ibragimov (TECHNOSIS Company): According to our observation, there is currently no shortage in the backhoe loader market. Since the withdrawal of Western brands, Chinese brands can meet the demand for high-quality special equipment, which is usually not inferior to European brands. At the same time, it is important that corresponding equipment can be found in all price ranges.

Dmitry Abramov (Lingong business of RBA Company): In 2022, the backhoe loader market experienced a shortage of equipment. This was due to the withdrawal of most European brand machines from the market. But in 2023, machines from China and Turkey began to enter the market on a large scale. Some of these products can compete with European counterparts. In 2023, the market has grown significantly compared to before and can meet customers' demand for this type of equipment. At present, there is no shortage in the market. Customers can choose from machines of different price categories and different technical specifications and functions.

Does your company have plans to adjust, supplement or replace the product series according to changes in the situation?

Igor Murashov (XCMG Russia): The XCMG backhoe loaders XC8-S2570 and XC8-S3570 are completely assembled from Chinese components. Any changes in the situation will not affect the delivery time of the machines nor the complexity of their maintenance and repair.

Andrey Zabarduyev (GRAND T Technical Center): Our company, in conjunction with the factory, is working hard to modernize the product series and launch a new generation of equipment. By the end of the year, we will launch a new generation of Weheavy backhoe loaders from Weichai equipped with axial piston hydraulic pumps, joystick control, and front and rear buckets. This will make the operator's working environment more comfortable, significantly reduce fuel consumption, and enable Weheavy equipment to compete with well-known global brands.

Renat Ibragimov (TECHNOSIS Company): Currently there is no such plan. We fully meet the equipment needs of our partners. However, we always closely monitor market dynamics, especially customer needs. Therefore, we will be ready to respond to any changes at any time. Dmitry Abramov (Lingong business of RBA Company): In addition to the existing models, we are also developing another machine - a Lingong LGCE backhoe loader with the same size tires. We plan to launch this equipment in the second half of 2025.

Please talk about the service and spare parts supply situation of backhoe loaders. Have you increased inventory and product variety to make up for logistical difficulties?

Igor Murashov (XCMG Russia): The founder of XCMG Russia is China's XCMG Group. Therefore, considering the rapidly developing friendly relations between Russia and China, we have not encountered any supply problems. All spare parts are original parts and are supplied directly from the XCMG factory. Therefore, there is no risk of counterfeit and shoddy products, which is different from the gray channels for importing parts from other countries.

Andrey Zabarduyev (GRAND T Technical Center): This year, our company has built a central spare parts warehouse with an area of 10,000 cubic meters. In addition, we have opened 6 retail branches and more than 30 distribution centers in Russia. Each center is equipped with a spare parts warehouse and a service field team. The inventory value of spare parts is about 100 million rubles.

Renat Ibragimov (TECHNOSIS Company): Our service department is equipped with high-quality and modern tools and can perform maintenance and repair of almost any complexity. The spare parts warehouse for our backhoe loaders was well-configured at the beginning, but the product variety is indeed changing, and we are also adapting to the actual situation. Equipment is constantly evolving, so we need to continuously improve skills, inventory and logistics.

Dmitry Abramov (Lingong business of RBA Company): The variety and inventory of spare parts of RBA Company have increased mainly because the number of equipment sold by our company has increased. We are committed to ensuring that customers are satisfied with the quality of the products they purchase and the quality and speed of service. Continuously expanding the spare parts inventory is an important part of achieving this goal.

The service and spare parts supply situation of backhoe loaders is as follows:

XCMG Russia (Igor Murashov): The supply of spare parts is smooth as XCMG Russia is backed by XCMG Group. All spare parts are original and directly supplied from the factory, eliminating the risk of counterfeit products. There are no supply issues considering the rapidly developing friendly relations between Russia and China.

GRAND T Technical Center (Andrey Zabarduyev): This year, a central spare parts warehouse with an area of 10,000 cubic meters has been built. There are also 6 retail branches and over 30 distribution centers in Russia. Each center is equipped with a spare parts warehouse and a service field team. The inventory value of spare parts is around 100 million rubles.

TECHNOSIS Company (Renat Ibragimov): The service department is equipped with high-quality modern tools for maintenance and repair of various complexities. The spare parts warehouse was well-configured initially, but product varieties are changing and the company is adapting to the situation. As equipment evolves, there is a need to continuously improve skills, inventory, and logistics.

RBA Company Lingong Business (Dmitry Abramov): The variety and inventory of spare parts have increased mainly due to the increase in the number of equipment sold. The company is committed to ensuring customer satisfaction with product quality and service quality and speed, and expanding the spare parts inventory is an important part of achieving this goal. To compensate for logistical difficulties, companies have taken different measures such as increasing inventory and product variety. GRAND T Technical Center has built a large central warehouse and expanded its retail and distribution network. TECHNOSIS Company is adapting to changing product varieties and improving logistics. RBA Company is increasing spare parts inventory as its equipment sales grow.

As a professional, here are some suggestions for consumers who wish to purchase and maintain backhoe loaders on how to obtain high-quality machines and services and avoid counterfeit products:

Igor Murashov (XCMG Russia): Consumers are advised to purchase new machines and obtain after-sales service from the authorized dealer "XCMG Russia".

Andrey Zabarduyev (GRAND T Technical Center): Choose a verified supplier. Before purchasing, be sure to inspect the equipment at the dealer and confirm whether the dealer has its own service department and spare parts warehouse. At the same time, try to obtain feedback from customers who have already purchased the equipment and inspect the working condition of the equipment on site.

Renat Ibragimov (TECHNOSIS Company): When purchasing any special equipment, especially a backhoe loader, pay attention to four key points when auditing suppliers:

1. Is the company an official dealer or agent?

2. Does the company have its own service department and can provide maintenance at the customer's location?

3. Does the company have its own inventory of high-quality spare parts?

4. Does the company provide warranty for the equipment? If the answers to these questions are all yes, you can be assured that the supplier is not a "gray" supplier and will not provide counterfeit products.

Dmitry Abramov (Lingong business of RBA Company): I suggest choosing high-quality equipment and not skimping on expenses when purchasing. Choose a supplier that can provide fast and high-quality service, which is also an indispensable part of commercial equipment sales.

Can you make a prediction for the backhoe loader market in 2024?

Igor Murashov (XCMG Russia): The withdrawal of American and European brands from the Russian market and the end of their official support have brought many problems to equipment owners. Customers accustomed to high-quality service and equipment will seek excellent substitutes with reasonable prices, and XCMG can just provide such substitutes! Based on this, we are optimistic about the future and expect that the sales of this type of equipment will increase due to new participants in the market.

Andrey Zabarduyev (GRAND T Technical Center): Due to the unstable national situation, it is difficult to make any predictions.

Renat Ibragimov (TECHNOSIS Company): We need to understand two aspects.

1. We believe that the market will continue to grow, but at some point there may be oversaturation. A large number of Chinese brands will lead to the fact that in competition, they will have to improve service, spare parts supply and provide more favorable conditions. At the same time, the Russian manufacturing industry cannot yet compete with it in terms of technical solutions and production speed.

2. Prices will rise. Considering the increasing scrap fees, we must be prepared to accept price increases. In the market, in any case, customers will gradually adapt to these prices and equipment will be purchased according to existing rules.

Dmitry Abramov (Lingong business of RBA Company): According to incomplete data for the first half of 2024, it is expected that the backhoe loader market will be on par with last year by the end of the year.