BUSINESS

China’s Machinery Giants Hike Excavator Prices to Offset Rising Costs

Published: May. 12, 2026 3:15 p.m. GMT+8

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Major Chinese construction machinery manufacturers are raising excavator prices to offset surging raw material costs and recover profit margins squeezed by a prolonged price war.

Sany Heavy Industry Co. Ltd. (600031.SH), XCMG Construction Machinery Co. Ltd. (000425.SZ) and Guangxi Liugong Machinery Co. Ltd. (000528.SZ) have announced price hikes of 3% to 5% across their excavator lineups, taking effect between mid-May and early June.

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Major Chinese firms Sany, XCMG, Liugong raise excavator prices 3-5% from May 15 to June 1 due to surging steel (up 5.35% March-May) and other raw material costs.
Ends domestic price war after Q1 2026 sales hit 73,000 units (+19.5% YoY; exports +36.1%).
Follows Caterpillar, Komatsu hikes amid weak housing starts (-20.3% to 104M sqm).

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Who’s Who

Sany Heavy Industry Co., Ltd.: Sany Heavy Industry Co., Ltd. (600031.SH) announced a 5% price hike for all excavator models effective May 15, amid surging raw material costs like steel, oil, rubber, copper, and aluminum. This coordinated move with peers ends a domestic price war, aiming to restore profit margins despite sluggish demand.

XCMG Construction Machinery Co., Ltd.: XCMG Construction Machinery Co., Ltd. (000425.SZ) announced excavator price hikes of 3% to 5% across various models, effective June 1, to offset rising raw material costs like steel and recover margins after a domestic price war.

Guangxi Liugong Machinery Co., Ltd.: Guangxi Liugong Machinery Co., Ltd. (000528.SZ) announced a 5% price increase for all excavator models, effective May 20, as part of a 3-5% hike across major Chinese manufacturers' excavator lineups from mid-May to early June, to offset rising raw material costs and end a domestic price war.

Zoomlion Heavy Industry Science and Technology Co., Ltd.: Zoomlion Heavy Industry Science and Technology Co., Ltd. (000157.SZ), traditionally focused on cranes, ramped up its excavator business. Its new smart factory for micro and small excavators began operations in 2025, with products hitting the market in Q1 2026, prompting rivals to slash prices and exacerbating the domestic price war.

Caterpillar Inc.: Caterpillar Inc., a global industry leader, raised excavator prices earlier in Q1 2026, preceding similar hikes by Chinese firms like Sany, XCMG, and Liugong. This move signals the end of intense price wars, with Chinese manufacturers following suit amid rising raw material costs.

Komatsu Ltd.: Komatsu Ltd., alongside Caterpillar Inc., raised excavator prices earlier in Q1 2026. Chinese manufacturers like Sany, XCMG, and Liugong are following suit with 3-5% hikes to counter rising raw material costs.

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