Pacific Securities: Domestic sales of excavators increased slightly year-on-year in July, exports maintained a high growth rate

The Zhitong Finance App learned that Pacific Securities released a research report saying that recently, the China Construction Machinery Industry Association released the first sales report for major products in the construction machinery industry for July 2026. Domestic sales of excavators increased slightly year-on-year in July, and exports maintained a high growth rate. The bank is optimistic that domestic and foreign markets will continue to improve, and will continue to be optimistic about the construction machinery sector. As the overseas boom continues, and domestic brands are further cultivated in overseas markets in various regions, the share of domestic brands overseas will also continue to increase, and exports are expected to continue to perform well.

Pacific Securities's main views are as follows:

Domestic sales of excavators increased slightly year-on-year in July, and exports maintained a high growth rate

The Construction Machinery Industry Association released excavator sales data for July. In July 2026, a total of 19,521 excavators of various types were sold, up 13.9% year on year. Sales in China were 7,608 units, up 4.13% year on year, up slightly year on year. Export sales were 1,1913 units, up 21.2% year on year, and exports maintained a high growth rate.

Domestic growth was slight year-on-year, and continued to be optimistic about rising demand in the future

Domestic sales of 7,608 excavators were achieved in July, up 4.13% year on year. The year-on-year increase was slower than in previous months, mainly due to: 1) July is generally the traditional low season for construction machinery, and demand has slowed down this year due to weather such as high temperatures and torrential rain; 2) The base figure for the same period last year was high. In July last year, the domestic market reached 7,306 units, an increase of 17.2% year on year, causing the year-on-year growth rate to slow down in July this year. Currently, demand for excavators themselves is in an upward cycle. The construction machinery industry's last upward cycle was 2016-2020. According to the average life expectancy of equipment of about 8 years, it is currently in the inventory equipment renewal period. Looking ahead to the future, the bank believes that with favorable policies and the superposition of the construction machinery renewal cycle, the industry will continue to be optimistic about the subsequent increase in domestic demand.

Exports have maintained a high growth rate, and overseas demand is booming

In July, export sales were 1,1913 units, up 21.2% year on year. Exports continued to grow at a high rate, and overseas demand was high. The bank believes that overseas exports can still achieve high growth under high oil prices and a high base. The bank believes that as overseas sentiment continues and domestic brands further cultivate overseas markets, the share of domestic brands overseas will continue to increase, and exports are expected to continue to perform well.

Risk warning: Domestic downstream construction falls short of expectations; overseas market development falls short of expectations, etc.