1、ab8 August 2025Global ResearchPowered byUBS Evidence LabYESChina Construction Machinery SectorExcavator sales beat expectations in July;OEM exports up;actual domestic demand still weakJuly domestic excavator sales grew 17%YoY;exports increased 32%YoYDomestic:CCMA data show excavator sales reached 17

2、,138 units in July,up 25%YoY,with domestic sales of 7,306 units,up 17%YoY/down 10%MoM.Excavator sales in 7M25 rose 18%YoY(+17%YoY in H1),with domestic sales up 22%YoY(+23%YoY in H1).As per our channel checks:1)some dealers see no improvement in actual demand/construction activity.They hold low expec

3、tations for August sales,forecasting flat performance,but anticipate improvement in September.2)About competition,dealers believe counter-involution policies have a limited impact,as OEMs have prioritized profitability and margins in recent years.3)Pricing overall remains relatively stable.4)No impr

4、ovement in cash collection was observed in July.Exports:Excavator exports totalled 9,832 units in July,up 32%YoY but down 8%MoM.Export volume grew 13%YoY in 7M25(+10%YoY in H1),better than our/market expectations.Zoomlion,Hengli and XCMG also noted accelerated exports in our call last week.Wheel-loa

5、der sales volume rose 7%YoY in July;27%electric penetration rateWheel-loader sales(domestic and exports)were 9,000 units in July,up 7%YoY,with domestic sales of 4,549 units,up 2%YoY,in line with our/market expectations,and exports of 4,451 units,up 13%YoY,better than our/market expectations.In parti

6、cular,electric wheel-loader sales jumped 82%YoY to 2,391 units in July,implying 27%penetration,well above the prior-year level of 16%.Exports of major construction machinery products grew 6%YoY in JuneAccording to UBS Evidence Lab(Access Dataset),Chinas construction machinery(CM)export value increas