German PV Equipment Sales In Q3/2019 Up Sequentially

• The VDMA says sales for the German solar PV equipment manufacturers in Q3/2019 couldn't grow as much as last year but went up 12% on sequential basis
• Export ratio was 98% with Asia taking 60% and America 30%; says Malaysia shows strong interest in German equipment
• Incoming orders during the third quater went up 26% sequentially, as per the VDMA
• For the fourth quarter, manufacturers are cautious and expect their sales to drop 18% QoQ

Sales for solar PV production equipment from Germany during the third quarter of 2019 rose by as much as 12% on  sequential basis, but it couldn't reach the level of the same period last year, according to the German Engineering Federation, VDMA (see German PV Equipment Order Intake Drops In Q3/2018).

During Q2/2019, sales were down 13% sequentially (see German PV Equipment Sales Down 13% QoQ In Q2/2019).

Of all production achieved during the third quarter, 98% was shipped abroad in Q3/2019 with 60% going to Asia whose export share declined by 7 percentage points QoQ. Apart from China, it was Malaysia that showed strong interest for German PV production equipment, however, VDMA did not specify individual sales contribution of individual nations.

Relative export shares to America increased, rising 15 percentage points to 30%.

VDMA says German manufacturers reported an increase of 26% in incoming orders compared to the previous quarter with Malaysia exhibiting strong interest.

Category wise, shares of machinary and plants went up by more than 5 and 10 percentage points during the reporting quarter while the components category saw a decline of 16 percentage points in total sales. However, sales of production equipment for cells increased by over 20 percentage points to a total share of 49%, equaling that of thin-film photovoltaics for the first time this year.

"The strong incoming orders, especially in the production of crystalline silicon cells and thin-film modules, demonstrate the strength of German mechanical engineering in these technically demanding segments of the PV production chain," said Managing Director of RCT Solutions GmbH and Chairman of Board of VDMA Photovoltaic Equipment, Dr Peter Fath.

However, the mood is subdued when it comes to the Q4/2019 forecast as PV equipment makers guide their sales to fall by 18% QoQ. The order volume at the end of the reporting quarter decreased only slightly compared to the previous one while the range of orders remained constant at eight months.