by Ma Yueran

China’s excavator market saw a strong recovery in February, with sales rising 52.8% year on year to 19,300 units, according to the China Construction Machinery Association. Domestic demand nearly doubled to 11,600 units, marking the best February performance since 2022. The sharp rebound contrasts with last year’s holiday-impacted decline of 49.2%.

Exports continued their steady growth, reaching 7,630 units, up 12.7% year on year. Since August 2024, overseas shipments have maintained positive momentum.

In the first two months of 2025, total excavator sales rose 27.2% to 31,800 units. Domestic sales grew 51.4% to 17,000 units, while exports reached 14,700 units, up 7.37%.

A key highlight was the surge in electric excavator sales, which hit a record 19 units in February, surpassing last year’s peak of 16 in June. This reflects the industry’s gradual shift toward electrification.

Analysts attribute the market rebound to stronger economic activity and policy support, including increased infrastructure spending and equipment renewal incentives. The demand for excavators under 20 tonnes was particularly robust, driven by rural construction and replacement programs.

Looking ahead, March and April are expected to see further growth as construction projects ramp up post-holiday. Analysts anticipate that domestic demand will continue to recover throughout 2025, aided by policy measures and the natural replacement cycle of aging machinery. Overseas demand is also expected to improve, particularly in Western markets.

Investor confidence in the sector has strengthened, with shares of leading construction machinery firms like XCMG, SANY, and Zoomlion rising 20-30% since January, reflecting the industry’s positive outlook.