China construction machinery activity rebounds in March as excavator sales jump

by MA Yueran

China's construction machinery sector picked up in March, with activity and equipment sales rising as construction entered the traditional peak season.

The average equipment utilization rate stood at 41.49%, up 16.84 percentage points from the previous month, according to state broadcaster CCTV. Fourteen provinces recorded month-on-month increases of more than 20 percentage points.

Excavator sales, a key proxy for construction demand, rose 26.4% year on year to 37,400 units in March, according to the China Construction Machinery Association. Domestic sales climbed 23.5% to 24,000 units, while exports rose 32% to 13,300 units and were up 27% month on month.

The rebound follows a weak start to the year due to the Lunar New Year holiday. February sales fell to 17,200 units, down about 10% year on year.

For the first quarter, total excavator sales rose 19.5% to 73,300 units. Domestic sales increased 8.25% to 39,600 units, while exports jumped 36.1% to 33,800 units.

The sector has been recovering since last year, supported by equipment upgrade policies, automation and labor substitution trends, and macro policy easing.

Sany said its 2025 revenue rose 14.73% to 89.2 billion yuan, with net profit up 41.18% to 8.41 billion yuan. Overseas revenue accounted for 64% of total revenue.

Zoomlion's overseas revenue rose 30.52% in 2025 to 30.5 billion yuan, making up 58.56% of total revenue, with margins about 6 percentage points higher than in the domestic market.

Sany has built a global network of more than 400 overseas subsidiaries, joint ventures and distributors, while Zoomlion has expanded rapidly in emerging markets including Africa, Latin America, Southeast Asia and the Middle East.

Africa recorded the fastest growth, particularly for Zoomlion, which reported a surge of more than 150% in the region. The company added more than 40 new overseas outlets last year as Chinese firms shift from exports toward localized production and services.

Both companies expect domestic demand to improve further, supported by infrastructure investment, large-scale projects, rising adoption of new-energy equipment and a replacement cycle for aging machinery, while overseas expansion continues to underpin earnings growth.