China Galaxy Securities has released a research report highlighting that on the domestic demand front, the year-on-year growth rate of excavator sales in July slowed compared to June, influenced by some demand being pulled forward due to end-of-quarter assessments in June and the traditional low season of July. For the first seven months, the cumulative year-on-year growth rates for domestic sales and exports stood at 18.8% and 31.7%, respectively. The ongoing progress in equipment upgrades, new urbanization construction, and major engineering projects is expected to provide steady growth momentum for the domestic market over the medium to long term.
On the export side, excavator shipments in July grew 21.2% year-on-year, with the cumulative figure for the first seven months up 31.7% year-on-year. From a medium- to long-term perspective, Chinese original equipment manufacturers still have significant room for market share expansion in Europe, the Americas, and Australia, as well as in new energy products, according to the report.
Key Views from China Galaxy Securities:
In July, excavator domestic and export sales rose 4.13% and 21.2% year-on-year, respectively. According to industry association data, a total of 19,521 excavators were sold in July, up 13.9% year-on-year. Of this, domestic sales grew 4.13% and exports rose 21.2%. For the January-July period, total sales reached 171,841 units, up 24.8% year-on-year, with domestic and export sales rising 18.8% and 31.7%, respectively.
For loaders, 11,774 units were sold in July, up 30.8% year-on-year. Domestic sales grew 26.8% and exports rose 34.9%. In the first seven months, total loader sales reached 93,826 units, up 27.2% year-on-year, with domestic and export sales increasing 17.4% and 38.9%, respectively. The electrification rate for domestic loader sales in July was 62.8%, up 2.6 percentage points. The cumulative domestic electrification rate for the first seven months was 58.1%, while the export electrification rate in July was 7.6%, up 2.5 percentage points.
For other products, industry association data for June showed the following sales growth rates: truck cranes at 19% overall (15% domestic, 23% export); crawler cranes at 33% overall (-4% domestic, 51% export); truck-mounted cranes at 22% overall (-18% domestic, -29% export); tower cranes at 15% overall (11% domestic, 20% export); forklifts at 17% overall (18% domestic, 15% export); and aerial work platforms at 38% overall (39% domestic, 37% export).
In July, domestic operating hours and the operating rate for construction machinery fell 8.82% and 6.34 percentage points year-on-year, respectively. Industry association data showed that the average monthly operating hours for major construction machinery products in July 2026 was 73.6 hours, down 8.82% year-on-year and 0.17% month-on-month. This included 54.3 hours for excavators and 98.2 hours for loaders. The operating rate for major construction machinery products in July 2026 was 49.9%, down 6.34 percentage points year-on-year and 1.17 percentage points month-on-month. This rate included 48.2% for excavators and 53.9% for loaders. According to Komatsu's official website, Komatsu excavator operating hours in North America, Europe, Japan, and Indonesia in June 2026 grew 3.7%, 5.4%, -2.1%, and 4.4% year-on-year, respectively.
Industry News Highlights:
1) On July 6, LiuGong delivered a 9200F ultra-large excavator to the Jiangxi Copper Group. 2) Zoomlion showcased its earthmoving, crane, concrete machinery, aerial work platforms, and agricultural machinery at the largest exhibition in East Africa. 3) On July 22, Hangcha Group held its inaugural AI DAY, officially launching the LogiMind embodied large model and a full series of forklift robots. 4) On July 27, XCMG shipped nearly 300 crawler cranes to Southeast Asia, setting a new single-record for the region. 5) On July 27, XCMG's first overseas new energy factory, the Indonesia New Energy Manufacturing Base, officially commenced production.
Risks to Note: Risks include macroeconomic performance falling short of expectations, weaker-than-expected policy implementation, intensifying industry competition, export trade disputes, and exchange rate fluctuations.
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