According to a research report from GLMS SEC, excavator sales in March 2026 reached approximately 37,000 units, representing a year-on-year increase of 26.4%, indicating robust overall sales performance. Emerging markets such as Southeast Asia, the Middle East, and Africa, driven by strong infrastructure demand, have become a stable foundation for exports. In high-end markets like Europe and the United States, Chinese companies are expected to leverage their advantages in electrification and intelligent technology to gradually break the long-standing dominance of foreign brands. Overseas expansion may become a pillar for smoothing domestic cycles and driving profit growth. The construction machinery industry in 2026 is expected to see synchronized growth in domestic and international demand, with first-quarter sales consistently exceeding expectations, reinforcing the upward trend in industry prosperity.

The latest data from the China Construction Machinery Association shows that excavator sales in March 2026 were about 37,000 units, up 26.4% year-on-year. Domestic sales accounted for 24,000 units, a 23.5% increase, while exports reached 13,000 units, rising 32%. From January to March 2026, total excavator sales amounted to 73,000 units, up 19.5% year-on-year. Domestic sales totaled 40,000 units, an increase of 8.3%, while exports reached 34,000 units, surging 36.1%, demonstrating strong overall sales performance.

Domestic demand accelerated notably, with cumulative domestic excavator sales in the first quarter up 8% year-on-year. March alone saw a 23% increase, significantly faster than the average of the previous two months. This acceleration is attributed to the front-loaded issuance of special bonds stimulating demand. In the first quarter of 2026, new special bond issuance totaled approximately 1.16 trillion yuan, up 21% year-on-year, accounting for 26.4% of the annual issuance quota. This represents a 4.6 percentage point acceleration compared to the first quarter of 2025. Funds were precisely directed toward major infrastructure projects, livelihood security, and new productive forces, with infrastructure remaining a key focus. The 2026 government work report outlined plans to allocate 4.4 trillion yuan in special bonds, emphasizing support for major project construction and the resolution of implicit debt. The strategy of "early issuance, early utilization, and early results" for special bonds is expected to boost infrastructure investment demand.

Exports continued to show strong performance, with cumulative overseas excavator sales in the first quarter up 36% year-on-year. March alone saw a 32% increase. According to customs export data, China's construction machinery product exports from January to February 2026 reached approximately $10.7 billion, up 33% year-on-year. Exports to Africa surged 77%, to Oceania 51%, to Europe 28%, and to countries and regions involved in the Belt and Road Initiative increased 25%. Emerging markets like Southeast Asia, the Middle East, and Africa, with their robust infrastructure needs, have solidified their role as a stable base for exports. In high-end markets such as Europe and the United States, Chinese enterprises are poised to utilize their strengths in electrification and smart technologies to gradually challenge the long-term monopoly of foreign brands. Overseas expansion is likely to become a key driver for mitigating domestic cyclical fluctuations and sustaining profit growth.

Investment recommendations highlight leading excavator manufacturer Sany Heavy Industry, mining equipment pioneer XCMG, Zoomlion Heavy Industry which shows high growth from a low base in non-excavator segments, bulldozer leader Shantui, hydraulic components leader Hengli Hydraulic, earthmoving equipment leader Liugong, and tower crane rental leader Construction Machinery. Risks include slower-than-expected recovery in domestic demand, challenges in international expansion, and intensifying industry competition.