PT United Tractors Tbk (UNTR) projects that the national heavy equipment market will decline this year due to two factors.

First, the decline in customer spending due to the 2024 election and second due to the decline in commodity prices, especially in the mining sector.

"Regarding numbers, the estimated total heavy equipment market in 2023 is 18,000 units. Meanwhile, the forecast in 2024 is around 13,000-14,000 units," United Tractors Corporate Secretary Sara K. Loebis told Kontan, Friday (5/1).

Although the heavy equipment market is declining, UNTR has a strategy to increase heavy equipment sales in 2024, by optimizing product support services to support the needs of heavy equipment owner customers.

"Through superior product support, customer heavy equipment is guaranteed productivity and work efficiency," she said.

Sara said that until November 2023, sales of Komatsu brand heavy equipment reached 5,061 units, down from the same period in 2022 of 5,457. "The achievement for the full year 2023 is still being consolidated," she said.

Meanwhile, in 2024, Komatsu's sales target is only set at the level of 4,000 units. Sara explained, the target was launched because she saw the declining market conditions of heavy equipment.

By sector, the mining sector still dominates sales until November 2023, where 63% is contributed by the mining sector. Then, as many as 15% came from the construction sector, as many as 13% came from the forestry sector, and as many as 95 from the agribusiness sector.

"(The 2024 trend) is expected to remain the same because generally players in the mining sector have more definite production plans," she concluded.

Image source: www.investasi.kontan.co.id

Source: www.investasi.kontan.co.id/United Tractor (UNTR) Turunkan Target Penjualan Alat Berat pada 2024, Ini Alasannya