HD Hyundai Infracore is strengthening its focus on Germany and the United Kingdom, the first and second largest markets for construction machinery in Europe.
On the 6th, HD Hyundai Infracore announced that it held a groundbreaking ceremony for its German subsidiary (HD Hyundai Infracore Deutschland) in Mannheim, Germany, aimed at expanding sales of DEVELON construction machinery. The ceremony was attended by HD Hyundai Infracore CEO Oh Seung-hyun, Mannheim Mayor Christian Specht, Alexander Adler, CEO of the local real estate investment company Adler Group, and other officials.
On the 5th (local time), HD Hyundai Infracore held a groundbreaking ceremony for its German subsidiary 'HD Hyundai Infracore Deutschland' of DEVELON construction machinery in Mannheim, Germany. (From left) Christian Specht, Lord Mayor of Mannheim; Alexander Adler, CEO of Adler Group; Seunghyun Oh, CEO of HD Hyundai Infracore; Johan Adler, Director of Adler Group.
The German subsidiary’s site covers approximately 10,560 square meters and includes a state-of-the-art three-story office building, a training center, a service center, and a parts warehouse. Completion is targeted for the second half of 2024. Notably, the German subsidiary will operate as a directly managed sales outlet, a first for HD Hyundai Infracore in Europe. Typically, the construction equipment industry sells to customers through dealers located in each country.
The European construction machinery market, based on excavators and wheel loaders, is approximately 150,000 units annually, with Germany and the UK accounting for 45% of the total market. Among these, Germany holds about a 25% market share. The strategy is to aggressively target not only Germany but also Austria, Switzerland, and other nearby countries through the German subsidiary.
On the 7th, HD Hyundai Infracore will also participate as a sponsor in a friendly match of the national football team held in Wales, UK. They plan to capture the attention of local football fans by displaying DEVELON LED advertisements inside the stadium, placing advertising banners on the Wales Football Association website for two weeks, and positioning DEVELON excavators and wheel loaders at the stadium entrance.
The UK is the largest sales country for HD Hyundai Infracore’s construction machinery sales in Europe. It has the second-largest construction machinery market in Europe after Germany, accounting for 20% of the entire European market.
Oh Seung-hyun, CEO of HD Hyundai Infracore, said, "With concerns about a prolonged downturn in the Chinese market, strengthening advanced markets such as Europe and North America is essential for stable growth. Europe is expected to maintain a market size of around 150,000 units in the future, and we anticipate that establishing a new subsidiary in Germany will help increase our market share within Europe."
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