Pacific Securities: In July, domestic excavator sales saw a slight year-on-year increase, while exports maintained a high growth rate.

The Pacific Securities published a research report stating that recently, the China Construction Machinery Industry Association released the sales flash report for major construction machinery products in July 2026. In July, domestic excavator sales saw a slight year-on-year increase, while exports maintained a high growth rate. The firm is optimistic about the continuing improvement of both domestic and international market conditions and remains positive about the construction machinery sector. With the sustained overseas demand and domestic brands further deepening their presence in various overseas markets, the market share of domestic brands abroad is expected to continue rising, and exports are likely to perform well. The main points from Pacific Securities are as follows: In July, domestic excavator sales experienced a slight year-on-year increase, and exports maintained a high growth rate. The Construction Machinery Industry Association released the excavator sales data for July, reporting a total of 19,521 excavators sold in July 2026, a year-on-year increase of 13.9%. Among these, domestic sales reached 7,608 units, reflecting a year-on-year increase of 4.13%, indicating a slight increase compared to last year, while export sales were 11,913 units, a year-on-year increase of 21.2%, maintaining a high growth rate. Domestic sales showed a slight year-on-year increase, and the outlook for subsequent demand remains positive. In July, domestic excavator sales totaled 7,608 units, a year-on-year increase of 4.13%. The growth rate compared to previous months has slowed primarily due to: 1) July is traditionally a slow season for construction machinery, and this year demand was affected by high temperatures and heavy rainfall; 2) The high base from the same month last year, where 7,306 units were sold, a year-on-year increase of 17.2%, contributed to the slowdown in this year's growth rate. Currently, demand for excavators is in an upward cycle. The last upturn in the construction machinery industry occurred from 2016 to 2020. Given that the average equipment lifespan is approximately eight years, we are now in a phase of equipment renewal. Looking ahead, the firm believes that with ongoing favorable policies and the overlapped equipment renewal cycle, domestic demand is expected to trend upward. Exports maintained a high growth rate, reflecting strong overseas demand. In July, export sales reached 11,913 units, a year-on-year increase of 21.2%, sustaining a high growth rate. The firm believes that despite high oil prices and a strong base, exports can still achieve significant growth. Looking forward, the firm anticipates that as overseas market conditions continue to improve, combined with domestic brands deepening their market penetration in various regions, the market share of domestic brands abroad will continue to rise, and exports are likely to show strong performance. Risk Warning: Domestic downstream operating conditions may fall short of expectations; overseas market expansion may not meet expectations, etc.