According to a research report released by Wanlian Securities, the construction machinery industry maintained a growth trajectory in both domestic and overseas sales during July, with excavator and loader sales both achieving double-digit growth. As domestic counter-cyclical adjustment policies continue to gain traction, major infrastructure projects are accelerating their implementation. Combined with the natural replacement cycle of the previous equipment update wave, the domestic demand market is now experiencing a recovery phase. On the export front, Chinese construction machinery manufacturers have spent years establishing their overseas footprints. Domestic products boast significant cost-performance advantages, and local manufacturers are steadily enhancing their competitive edge in international markets. Anchored on the industry's core theme of "simultaneous growth in domestic and overseas demand, coupled with rising volumes and prices," the focus should be on capturing the dual benefits of domestic demand recovery and overseas market expansion. Investors are advised to watch high-quality companies with strong market positions and proactive global expansion strategies.

The China Construction Machinery Association recently released its latest statistical data, showing that 19,521 excavators were sold in July, up 13.9% year-on-year, while 11,774 loaders were sold in the same month, reflecting a 30.8% increase. Wanlian Securities outlines its key viewpoints as follows.

Excavator sales climb 13.9% year-on-year in July, with overseas growth momentum notably strong

According to statistics from the China Construction Machinery Association covering major excavator manufacturers, 19,521 excavators were sold in July 2026, representing a 13.9% year-on-year increase. Of this total, domestic sales reached 7,608 units, up 4.13% year-on-year, while exports totaled 11,913 units, marking a 21.2% surge. In the January-to-July period of 2026, cumulative excavator sales reached 171,841 units, up 24.8% year-on-year. This includes 86,633 units sold domestically, reflecting an 18.8% growth, and 85,208 units exported, a 31.7% increase. In July, export momentum outpaced domestic sales, with the monthly export share rising to approximately 61.0%, making overseas demand the primary growth driver for the industry. Regarding electrification, 103 electric excavators were sold in July, including 41 units domestically and 62 units for export, bringing the overall penetration rate to just 0.53%. This figure lags significantly behind the domestic electric loader penetration rate of over 60%, indicating that the industrialization of electric excavators remains in its infancy and is unlikely to become a near-term earnings contributor. However, it does represent a long-term structural upgrade opportunity.

Loader sales rise 30.8% year-on-year in July, with domestic and overseas demand growing in tandem

Data from the China Construction Machinery Association for major loader manufacturers shows that 11,774 loaders were sold in July 2026, a 30.8% year-on-year increase. Domestic sales reached 5,770 units, up 26.8% year-on-year, while exports surged 34.9% to 6,004 units. During the first seven months of 2026, total loader sales reached 93,826 units, up 27.2% year-on-year. This includes 47,166 units sold domestically, representing a 17.4% increase, and 46,660 units exported, a substantial 38.9% jump, underscoring that overseas markets continue to serve as a critical growth engine. In terms of electrification, 4,078 electric loaders were sold in July, with 3,622 units sold domestically and 456 units exported. Structurally, domestic and overseas loader sales are now nearly evenly split, with monthly export volumes surpassing domestic figures. Exports account for roughly 51.0% of total sales, solidifying their role as a core growth pillar. On a marginal basis, both total growth and domestic growth rates for July exceeded the cumulative levels for the January-to-July period, confirming that domestic demand recovery is accelerating. Notably, the domestic penetration rate for electric loaders reached 62.77%, positioning electrification as a primary driver of domestic replacement demand and product structure upgrades. However, electric exports account for only 7.6%, indicating that the benefits of electrification remain concentrated within the domestic market. As loaders are a leading indicator sensitive to construction activity, their volume expansion confirms a steady recovery in the construction machinery sector's overall prosperity.

Both loaders and excavators post double-digit growth in July, yet the quality and structure of growth show distinct differences

Export growth for excavators and loaders reached 21.2% and 34.9% respectively in July, with monthly export volumes exceeding domestic sales for both categories, establishing exports as the common stabilizer for the two product segments. Domestic demand, however, shows some divergence: loader demand is strengthening at the margin, benefiting from robust activity in mining, infrastructure, and port sectors, while excavator domestic momentum is showing signs of softening. Overall, against the backdrop of counter-cyclical policy support, equipment renewal incentives, and the deepening global channel expansion by Chinese enterprises, the construction machinery industry is expected to sustain its upward trajectory in 2026, characterized by recovering domestic sales, strong export growth, and accelerated electrification.

Risk factors

Downside risks include weaker-than-expected investment in downstream real estate and infrastructure, delays in policy implementation, intensifying industry competition, international trade frictions, and fluctuations in the RMB exchange rate.