DFZQ has released a research report stating that May excavator sales growth exceeded expectations, with exports continuing to show robust expansion, indicating sustained high activity in overseas markets. The firm believes the competitive strength of Chinese construction machinery companies in international markets is continually strengthening, reflecting high domestic manufacturing and operational efficiency, with minimal impact from exchange rate factors. Additionally, the recent gradual increase in product prices is also seen as beneficial for improving long-term profitability. The firm continues to favor the investment opportunities presented by the overseas expansion of the construction machinery sector.
May Excavator Sales Growth Beats Expectations, Export Momentum Remains Strong
Following rapid growth in the construction machinery sector in April, market concerns existed regarding the sustainability of growth amid potential exchange rate interference. Excavator sales in May continued their rapid growth trajectory. According to data from the Construction Machinery Association, excavator sales in May reached 24,794 units, a year-on-year increase of 36.2%. Domestic sales accounted for 11,628 units, up 38.6% year-on-year, while exports totaled 13,166 units, rising 34.2% year-on-year. The sustained high growth in exports, with better-than-expected persistence, reflects the strong competitiveness of Chinese enterprises. The firm anticipates that exports will continue to maintain their vitality going forward.
Chinese Companies Maintain Strong Competitiveness Overseas Despite Currency Fluctuations
Despite the influence of exchange rates, the overall export performance of the industry remains robust. According to China Customs data, China's construction machinery exports in April 2026 amounted to $5.77 billion, a year-on-year increase of 12%. Analyzing China's construction machinery export structure, the firm notes a more balanced distribution across destination countries and strengthening presence in developed markets, indicating enhanced export competitiveness of Chinese enterprises. In the Southeast Asia region, following earlier strategic deployments, Chinese excavator companies have achieved broader and more balanced market coverage. In European and American markets, competitiveness in the U.S. market is continuously strengthening. The firm attributes the overseas competitiveness of Chinese excavators to sustained prior strategic deployments, product competitiveness, corporate operational capabilities, and the efficiency of the industrial chain cluster, with exchange rate factors playing a minor role. Looking ahead, the firm expects the overseas expansion of Chinese construction machinery enterprises to remain vibrant.
Product Price Increases to Translate Competitiveness into Profitability
The firm believes that enhanced competitiveness will strengthen corporate moats and improve long-term profitability. It has observed that the industry has recently initiated price increases. In May, domestic excavator manufacturers, including Sany, XCMG, Liugong, and Shantui, announced price hikes for excavator products. In June, domestic crane manufacturers, including Sany and XCMG, announced price increases for crane products. The firm views these price hikes by Chinese construction machinery companies as reflecting both market competitiveness and a commitment to the values of harmonious and stable industrial chain development, which is conducive to the long-term enhancement of industry profitability.
Risks to Consider
Potential risks include macroeconomic volatility leading to investment falling short of expectations, high overseas interest rates dampening demand, escalating overseas trade frictions, and rising raw material prices impacting corporate profits.