China Galaxy Securities: Domestic and foreign excavator sales in July were +4%/+21% YoY, and Denso's penetration rate continued to increase

The Zhitong Finance App learned that China Galaxy Securities released a research report saying that at the domestic demand level, the year-on-year growth rate of domestic excavator sales in July fell from June, which was affected by the anticipated demand in the June year-end assessment plus the traditional off-season in July; the cumulative year-on-year growth rates of domestic sales and exports in January-July were 18.8% and 31.7%, respectively. Equipment upgrading, new urbanization, and major engineering projects continue to advance, and it is expected to provide steady growth momentum for the domestic market in the medium to long term. At the export level, excavator exports increased 21.2% year on year in July, and the cumulative year-on-year increase in January-July was 31.7%. From a medium- to long-term perspective, there is still plenty of room for imagination for Chinese OEMs to increase their share in the European, American and Australian markets and the new energy products market.

The main views of China Galaxy Securities are as follows:

Domestic and foreign excavator sales were +4.13%/+21.2% year-on-year in July

According to the Association, (1) excavators: 19,521 excavators of various types were sold in July, an increase of 13.9% over the previous year. Among them: domestic/exports increased 4.13%/21.2% year-on-year. In January-July, a total of 171,841 units were sold, up 24.8% year on year. Among them: domestic/exports increased 18.8%/31.7% year on year. (2) Loaders: 11,774 loaders of various types were sold in July, an increase of 30.8% over the previous year. Among them: domestic/exports increased by 26.8%/34.9% year-on-year. In January-July, a total of 93,826 units were sold, up 27.2% year on year. Among them: domestic/exports increased 17.4%/38.9% year on year. The domestic electrification rate of loaders in July was 62.8% /+2.6pct, the cumulative electrification rate of domestic sales in January-July was 58.1%, and the export electrification rate in July was 7.6% /+2.5pct.

Other products

Association data shows that the overall sales growth rate in June was 19% for truck cranes, 15% for domestic sales, 23% for exports; 33% for crawler cranes; 22% for truck-mounted cranes; 18% for domestic sales, -29% for truck-mounted cranes; 15% for overall tower cranes; 11% for domestic sales, 20% for exports; overall forklifts 17%/domestic sales 18%/exports 15%; overall lift work platform 38%/domestic sales 39%/export 37%.

In July, the number of working hours/operating rate in China decreased by 8.82% /6.34pct year-on-year, respectively

According to Association data, in July '26, the average monthly working time of major construction machinery products was 73.6 hours, down 8.82% year on year and 0.17% month-on-month, including 54.3 hours for excavators and 98.2 hours for loaders. In July 2026, the monthly operating rate of major construction machinery products was 49.9%, down 6.34 pct year on year and 1.17 pct month on month, including 48.2% excavators and 53.9% loaders. According to Komatsu's official website, the number of hours Komatsu excavators started in North America, Europe, Japan, and Indonesia in June '26 was +3.7%, +5.4%, -2.1%, and +4.4%, respectively.

Industry news

1) On July 6, Liugong's 9200F oversized excavator was successfully delivered to Jiangtong Group; 2) Zhonglian Heavy Industries Earthwork/Construction Machinery/Concrete Machinery/Heavy Machinery/Agricultural Machinery and other products appeared at the largest exhibition in East Africa; 3) On July 22, Hangcha Group held the first AIDAY to officially release LogiMind's full-sized model and full range of forklift robots; 4) On July 27, Xugong's first overseas plant, New Energy, was officially sent to Southeast Asia, setting a new regional record; 5) On July 27, Xugong's first overseas plant, New Energy Manufacturing Base in Indonesia Production commenced.

Risk warning: the risk that the macroeconomy falls short of expectations, the risk that the degree of policy progress falls short of expectations, the risk of increased industry competition, the risk of export trade disputes, and the risk of exchange rate fluctuations.