Sales Of Heavy Equipment Drop 29 Percent, United Boss Tractors Reveals The Cause

Illustration (Photo: Doc Antara)

JAKARTA - PT United Tractors Tbk (UNTR) recorded a sales volume of Komatsu heavy equipment reaching 2,515 units as of July 2024.

This figure is down 29 percent when compared to the same period last year of 3,551 units.

As for the total sales, 63 percent were absorbed by the mining sector, 14 percent were in the plantation sector, 13 percent were in the construction sector, and 10 percent were in the forestry sector.

UNTR Director Loudy Irwanto Ellias said the decline in demand was due to weakening demand from the mining, construction and forestry sectors.

We can still maintain our market share. So that our market share can still be at the level of 28 to 29 percent. Of course, with the trust of our customers," he said in a virtual Public Expose Live press conference, Friday, August 30.

In addition, Loudy also highlighted the tight competition in the construction machine business segment in Indonesia. Especially with the inclusion of products from China which are much cheaper.

Actually, Chinese products are a very tough threat for us. Where competition is getting tighter with the existence of a new brand, "he explained.

Even so, Loudy menaky UNTR has prepared several strategies to face the tight competition in this heavy equipment market. One of them, implementing dual-product lines.

This dual-product line works in collaboration with principals, UNTR offers two different heavy equipment lines, one for light to medium jobs at a more affordable price.

"We held together with the principal, holding a dual-product line strategy. This dual-product line is actually a strategy that we have been adopt for the past few years," he said.

UNTR also provides added value or added value to customers. For example, fleet monitoring facilities and the provision of spare parts that can be installed independently by customers for maintenance efficiency.

We emphasize added value to provide satisfaction to customers, digitization allows consumers to monitor fleets instantly. We implement preventive maintenance packages that have reached 13,000 hours, equivalent to 3 years. So customers will worry free with maintenance," he said.