Wanlian Securities: The growth rate of excavator sales in October has slowed down, but industry demand remains stable.

Wanlian Securities issued a research report stating that the growth rate of excavator sales in October has slowed down, while loader sales have maintained high growth. However, from the perspective of domestic demand, the industry fundamentals remain solid, with the demand for domestic upgrades and the start of large-scale infrastructure projects providing strong support for domestic demand. The industry is gradually entering a new phase of growth, where competition has surpassed traditional scales and price wars, shifting towards competition in global operational capabilities and forward-looking technological strategies. In the future, driven by policies such as equipment upgrades and local government bond issuance, domestic demand is expected to accelerate recovery. Key points from Wanlian Securities: - The growth rate of excavator sales in China slowed down in October. According to statistics from the China Construction Machinery Industry Association, a total of 18,096 excavators were sold in October 2025, an increase of 7.77% year-on-year. Among them, domestic sales were 8,468 units, an increase of 2.44% year-on-year, and exports were 9,628 units, an increase of 12.9% year-on-year. From January to October 2025, a total of 192,135 excavators were sold, an increase of 17% year-on-year, with domestic sales reaching 98,345 units, an increase of 19.6% year-on-year, and exports reaching 93,790 units, an increase of 14.4% year-on-year. In terms of electrification, 16 electric excavators were sold in October. - Loader sales in China maintained high growth in October. According to statistics from the China Construction Machinery Industry Association, a total of 10,673 loaders were sold in October 2025, an increase of 27.7% year-on-year. Among them, domestic sales were 5,372 units, an increase of 33.2% year-on-year, and exports were 5,301 units, an increase of 22.6% year-on-year. From January to October 2025, a total of 104,412 loaders were sold, an increase of 15.8%. Domestic sales reached 55,368 units, an increase of 21.8% year-on-year, and exports reached 49,044 units, an increase of 9.69% year-on-year. In terms of electrification, 2,707 electric loaders were sold in September. - The overseas market is an important engine for growth, and the construction machinery industry is gradually entering a new phase of growth. From the perspective of domestic demand, while the growth rate of excavator sales in October has slowed down, the fundamentals of the industry remain solid, with domestic demand being supported by the demand for upgrades and the start of large-scale infrastructure projects. From the perspective of the overseas market, sales in the overseas market have performed well, with excavator exports exceeding domestic sales in a single month, and loader exports growing at a rate of over 20%. Chinese brands are experiencing a surge in penetration and competitiveness in the global market, and external demand has become an indispensable pillar for smoothing domestic cycles and driving growth. - Risk factors include lower-than-expected downstream real estate and infrastructure investment, slower-than-expected policy implementation, intensified industry competition, risks related to international trade frictions, and risks associated with fluctuations in the exchange rate of the Chinese yuan.