According to a research report released by China Galaxy Securities, domestic demand indicators show that non-excavator machinery such as truck cranes and mobile cranes have maintained high double-digit growth in domestic sales for six and eight consecutive months respectively, signaling increasing certainty in the recovery of the non-excavator segment. In January, domestic sales of tower cranes also turned positive (+7%), which, despite the impact of the Lunar New Year holiday timing, suggests underlying positive momentum. Major projects, new urbanization initiatives, and equipment renewal programs are expected to support domestic demand this year.
On the international front, excavator and loader exports recorded strong cumulative growth in January and February. With prices of metals such as gold and copper trending upward and remaining at elevated levels, overseas expansion and mining equipment are projected to be key growth drivers for leading Chinese construction machinery manufacturers in 2026. Key observations from China Galaxy Securities are as follows:
**Excavator Sales: -42% Domestic, +37% Export in February** According to industry association data, 17,226 excavators were sold in February, down 10.6% year-on-year. Domestic sales fell by 42%, while exports increased by 37.2%. Cumulative excavator sales for January–February rose by 13.1% compared to the same period last year, with domestic sales declining by 9.19% and exports growing by 38.8%. The report suggests that major infrastructure projects, new urbanization efforts, and equipment replacement initiatives are likely to support steady domestic demand growth in 2026, while overseas and mining equipment sectors are expected to maintain strong momentum.
**Loader Sales: -14.3% Domestic, +34.4% Export in February** Cumulative loader sales for January–February increased by 27.9% year-on-year, with domestic sales up 11.5% and exports surging 43.9%. The electrification rate for loaders in February was 22.45%, down 3 percentage points from the previous month.
Other product categories also showed robust performance. Truck cranes and mobile cranes have recorded high double-digit domestic sales growth for six and eight consecutive months, respectively. January sales growth figures include: truck cranes (total +29%, domestic +55%, export +9.6%), crawler cranes (total +73%, domestic +126%, export +58%), mobile cranes (total +15%, domestic +0.6%, export +128%), tower cranes (total +7.6%, domestic +6.9%, export +8.9%), forklifts (total +51%, domestic +63%, export +34%), and aerial work platforms (total +29%, domestic -16.6%, export +43%).
**Equipment Utilization Data** In February, the average operating hours for construction machinery in China increased by 18.6% year-on-year, while the equipment utilization rate decreased by 8.63 percentage points. According to Komatsu's data, excavator operating hours in January 2026 rose by 2.1% in North America, fell by 5.8% in Europe, and increased by 13.8% in Japan and 6.5% in Indonesia compared to the same period last year.
**Industry Developments** Recent industry updates include: 1) Sany recently launched a supply center in Dubai. 2) Sany delivered five large-tonnage hybrid mining dump trucks to the Akyem gold mine project of Zijin Mining Group, marking the entry of large-scale new energy mining equipment into the high-end West African market. 3) On February 18, XCMG signed a $400 million construction equipment procurement agreement with Dangote Group. 4) On March 3, XCMG signed a strategic cooperation memorandum with Chile's state-owned copper company, Codelco. 5) In early February, Zoomlion introduced a new generation of 136-ton hybrid electric drive dump trucks.
**Risk Factors** Potential risks include weaker-than-expected macroeconomic conditions, slower-than-anticipated policy implementation, intensified industry competition, export trade disputes, and exchange rate fluctuations.
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