HD Hyundai Group's construction equipment affiliate's production in the domestic market last year was less than half of 2023. The recovery in the industry has been delayed, especially in advanced countries like the United States and Europe, and emerging markets like the Middle East are also experiencing sluggishness. However, since its entry into India, it has achieved record performance, and there are signs of a rebound in China.
According to the construction equipment industry on the 19th, HD Hyundai Construction Equipment and HD HYUNDAI INFRACORE produced a total of 15,468 units of construction machinery, including excavators and wheel loaders, in the domestic market last year. This figure represents a 44.7% (12,538 unit) drop compared to the production volume of 28,006 units in 2023. HD Hyundai Construction Equipment reduced its output from 18,610 units in 2023 to 9,662 units last year, while HD HYUNDAI INFRACORE decreased from 9,396 units to 5,906 units.
The operating rates of each company's factories also decreased. The domestic factory operating rate of HD Hyundai Construction Equipment was 94.56% in 2023, practically at full capacity, but last year it was only 38.04%. HD HYUNDAI INFRACORE's operating rate last year was 48%, down from 76.9% in 2023. The reduction in domestic production by each company is attributed to the global economic slowdown affecting the construction market. The export proportion of revenue for each company exceeds 80%.
In contrast, the company is achieving its best performance since entering India in 2007. HD Hyundai Construction Equipment's Pune plant produced 6,575 units last year. The plant's operating rate last year was 109.58%, marking record levels in both output and operating rate. This is the highest figure among the four factories operated by HD Hyundai Construction Equipment worldwide. An operating rate exceeding 100% implies a high number of night shifts and overtime. Revenue from India reached 495.2 billion won, a 13.8% increase from 2023.
The outlook for the Indian market remains bright this year. The Indian government is expected to continue increasing infrastructure investment. HD Hyundai Construction Equipment, which produces a range of excavators from 8 tons to 50 tons, is expanding its product lineup, including the release of the 8-15 ton Smart Plus excavator series. It is also exporting two types of electric forklifts and two types of wheel loaders produced at its Ulsan plant.
The increase in production at the China plant is also promising. HD Hyundai Construction Equipment's Chinese subsidiary, Hyundai Jiangsu Engineering Machinery Co., Ltd., produced 4,275 units last year. This represents a 99.4% increase compared to 2,143 units in 2023. The industry expects that the replacement cycle of products exported to China will return this year and that the market conditions will improve due to economic stimulus measures. Previously, HD Hyundai Construction Equipment sold 125-ton ultra-large equipment in response to demand for mining development in China.
The Chinese construction equipment market was significant, accounting for more than 30% of the revenue of HD Hyundai Construction Equipment and HD HYUNDAI INFRACORE in the past, but it has contracted since the 2020s. Last year, the revenue from the Chinese subsidiary was 211.6 billion won. HD Hyundai Construction Equipment has set a goal to increase its performance in China by up to 23% this year.