On June 11, 2026, heavy news came from the industry. Official data announced by CCTV showed that in the first five months of 2026, sales of my country’s construction machinery at home and abroad showed a surge in both domestic and foreign sales. The industry has completely come out of the trough and achieved a rebound against the trend.
This achievement breaks the outside world’s inherent perception of the industry’s downward trend. The sales growth rate of the two core equipments is outstanding, which has fully boosted the prosperity of the industry.
This data is full of gold. The year-on-year growth rate of excavators and loaders both exceeded 24%, and double-digit growth was achieved simultaneously at home and abroad. It is not driven by short-term dividends from a single market.
Domestic infrastructure is steadily supporting the industry, providing stable demand for the industry; overseas orders continue to explode, further expanding the market space, and two-way efforts have established a solid foundation for industry growth.
Many people only see the surge in sales, but ignore the core truth.
This growth does not rely on low-price involution, nor does it rely on policy subsidies to cover the bottom line, but relies on globalization and new energy transformation to achieve breakthroughs.
Domestic construction machinery has already mastered the pricing power of the global industry.
Combined with authoritative data, domestic excavator sales from January to May totaled 126,875 units, a year-on-year increase of 24.7%, and loader sales were 67,162 units, a year-on-year increase of 27.3%. Both domestic and foreign sales of these two major equipment that are needed increased.
The logic of industry growth is clearly layered. Domestically, infrastructure facilities are being accelerated and old equipment is being upgraded intensively, revitalizing the local stock market. Overseas, infrastructure in many countries is in urgent need of stabilization, domestic brands have established overseas outlets, and export sales potential has been fully unleashed.
The new core growth points of the industry are highlighted. Green construction is being stepped up simultaneously at home and abroad. Orders for electric new energy construction machinery are soaring. Energy-saving models have replaced traditional fuel equipment, becoming the core competition for brands to seize the market.
It is necessary to get rid of the public’s misunderstanding. Construction machinery is no longer low-end OEM manufacturing. After years of technical research, domestic equipment has fully caught up with the old Japanese, Korean, European and American construction machinery brands in terms of cost performance, durability, and intelligence.
Industry associations have clearly predicted that the resilience of domestic and overseas demand will remain unchanged in the second half of the year, the penetration rate of new energy models will continue to rise, the layout of overseas channels will continue to improve, and the production, sales and export performance of construction machinery throughout the year are expected to reach new highs.
However, there are also some heartbreaking truths about the industry.
Five years ago, domestic construction machinery was subject to restrictions everywhere. Overseas markets were monopolized by foreign companies such as Carter and Komatsu. High-end core hydraulic and electronic control components were all imported. Exports could only rely on low prices to seize the low-end market, with meager profits.
This round of recovery is not a general dividend gain for the industry. The elimination of backward production capacity has been accelerated. Small and medium-sized workshop-style factories have closed down in large numbers. Leading domestic manufacturers have seized share. The industry reshuffle has been completed, and the strong and ever-strong pattern has been completely finalized.
Overseas growth has not been smooth sailing. Europe and the United States have long established trade barriers, raised access tariffs, and deliberately suppressed the export of domestic equipment overseas.
Companies have opened the door to overseas markets by building their own overseas after-sales warehouses and local chemical plants.
The profits of traditional fuel machinery continue to be compressed, the cost of raw materials remains high, and sales seem to have surged, making it difficult for small and medium-sized dealers to make profits.
Only by deploying electric machine models and self-developed core components can we maintain operating profit margins.
From a rational analysis point of view, the recovery in domestic demand has dual motivations to underpin the local market.
Domestic policies to stabilize infrastructure continue to be implemented, transportation, water conservancy, urban renewal, and county supporting projects have started in batches, and the rigid demand for new construction continues to be released.
Various localities have revitalized existing engineering projects, directly promoting the normal operation of small and medium-sized excavators and loaders.
Construction machinery across the country is facing a centralized replacement cycle. The equipment put into production in large quantities in the early years has expired, operation and maintenance costs have soared, and construction efficiency has declined. Construction companies have replaced new equipment in batches, forming a stable stock demand and supporting the basic local sales base.
Strengthening external demand means globalization is finally paying off.
The infrastructure construction of countries along the Belt and Road is accelerating, and many countries in Southeast Asia, the Middle East, and Africa are building infrastructure. However, local industrial production capacity is insufficient and they are highly dependent on imported construction machinery. Geographical cooperation has steadily opened up space for domestically produced equipment to increase overseas.
Domestic enterprises have completed their overseas localization efforts and built integrated overseas warehousing, maintenance and training sites to solve overseas after-sales shortcomings.
Compared with the high service fees of European and American brands, domestic one-stop services have greatly won purchase orders from overseas governments and enterprises.
In terms of track iteration, new energy has rewritten the industry landscape.
Countries around the world are strictly controlling carbon emissions at construction sites, restricting the operation of fuel-fired machinery and normalizing sewage charges. Electric zero-emission construction machinery has adapted to new global environmental protection regulations. Governments and enterprises at home and abroad have given priority to purchasing new energy models. The transformation of the track comes at the right time.
Domestic enterprises have planned in advance the research and development of battery electronic control adaptation to meet the needs of high-power operations on construction sites and make up for the shortcomings of battery life of electric equipment.
Compared with the lagging research and development of foreign companies, domestic new energy machinery has taken the lead and formed a differentiated competitive advantage.
The confidence of the industry lies in the independent control of the entire industry chain.
The upstream and downstream of construction machinery have realized a local closed loop, and steel, hydraulic parts, and intelligent control systems have been independently mass-produced, getting rid of the problem of stuck overseas parts.
The supply chain can be controlled to reduce production costs, and companies can flexibly respond to the risk of overseas tariff fluctuations.
The seemingly cold heavy industry data of construction machinery is actually a barometer of the resilience of a country’s real economy, industrial manufacturing, and foreign trade.
The two-way surge in the first five months is not an accidental market trend. It is the result of the solid development of domestic heavy industries that have been dormant and hardworking for several years.
In the past, public opinion blindly pursued the Internet and financial tracks and looked down on heavy industry. They felt that the manufacturing industry grew slowly and had a long profit cycle.
Today’s market conditions confirm that the hard-core physical manufacturing industry is the core foundation for the country’s economy to resist risks.
This growth has broken Western stereotypes. Europe and the United States are convinced that China Heavy Industry is a low-end OEM and cannot compete overseas. Nowadays, domestically produced equipment is exported to the world, taking into account cost-effectiveness and intelligence, and gradually dividing the global market share of established foreign companies.
However, there are still hidden risks that cannot be ignored in the industry. Overseas geopolitical conflicts and trade barriers are increasing at any time. Many countries have introduced local manufacturing protection policies, coupled with the fluctuation of raw material prices, subsequent export expansion still faces considerable external resistance.
Hidden risks of involution within the industry still exist, leading manufacturers are accelerating price cuts to attract customers, and the living space of small and medium-sized brands continues to be compressed.
If we only focus on price and do not develop technology in the future, we will easily return to low prices and overdraw our long-term overseas reputation.
New energy is the only breakthrough in the industry. There is no way out simply copying traditional fuel equipment. Only by deeply cultivating battery life, intelligent unmanned construction, and low-carbon adaptation technology can we consolidate our advantages at home and abroad and completely leave behind competing products from global peers.
Looking at the overall macro situation, the strength of construction machinery has brought multiple benefits. Infrastructure has stabilized employment, manufacturing has increased production capacity, and foreign trade has increased revenue. The upstream and downstream auto parts, steel, and electronic industries have benefited simultaneously, driving the entire industrial chain to increase revenue.
The final destination of competition between great powers is always industry. Finance can be speculated at a premium, but heavy industry cannot overtake others in a corner.
From being stuck to selling well all over the world, the counterattack of construction machinery is the complete epitome of the upward breakthrough of Chinese manufacturing.
Have there been more new energy engineering machines at the construction site around you?
Are you optimistic about the long-term competitiveness of domestic equipment overseas?
Welcome to leave messages and communicate in the comment area, and let’s understand together the underlying logic of Made in China’s breakout against the trend.
