Sandeep Singh, Managing Director, Tata Hitachi
“Despite the stiff competition, we are confident that customers will opt for Tata Hitachi’s high-quality machines for their sturdy, robust structure, and we will achieve our target sales and growth. We have recently launched a 5-ton loader, a 3-ton mini excavator, and a 20-ton excavator to meet demand in infra development projects.”
Sandeep Singh, Managing Director, Tata Hitachi

How is Tata Hitachi performing in the current scenario of high steel and fuel costs?
As commodity prices continue to sustain their bull run since the beginning of the pandemic, its cascading effect on steel-dominated industries, such as Construction Equipment is becoming more pronounced. We are seeing that it is having a direct impact on our operating profitability, which we try to offset only to a minimal extent by means of price increases to the buyers.

Presently, there are headwinds in the market caused by inflation, rise in fuel costs, etc. The Government and RBI are taking various measures to combat inflation aiming to sustain macroeconomic stability and growth. We hope these measures bring the much-required respite.

At Tata Hitachi, we are controlling costs, and innovating to improve the efficiencies in our machines. Once the monsoons subside, we expect the market to rebound and to have a sustained growth momentum fuelled by the infrastructure projects announced by the Government. In addition, Tata Hitachi’s participation in EXCON’21 has also thrown up a lot of business opportunities, which is helping us build a strong pipeline.

Tata Hitachi: Focused on Sales Target

We are seeing sales of excavators growing but that of backhoe loaders going down; is this because of cannibalization by the mini excavator to some extent?
Mini Excavators have been designed to offer solutions specially tailored for Indian conditions and the local regulations. Moreover, these machines are compact, versatile, can work in extremely constrained spaces, and can be easily transported in small pick-up trucks. Indian Customers are getting increasingly aware of these benefits and are switching to Mini Excavators from Backhoes.

Now the Mini Excavators constitute to 9% of the overall Hydraulic excavator market and their sales are getting better. We also believe that the market for the mini will continue to grow.

Tata Hitachi has three Mini Excavator models TMX20 neo, ZX23U, and ZX33U ranging from 2-Ton to 3.3-Ton. We have also unveiled an all-new indigenously developed 3-Ton Mini Excavator NX30.

So, will the backhoe market remain at 35000 - 40000 a year, or will the mini excavator’s growth impact its sales?
Mini Excavators can fit in places where Backhoe loaders can’t. Their overall versatility allows them to be used in many different applications and essentially keeps them running at low operating costs. Anybody who carefully considers the reasonable limits of their own needs and the features available to meet them will inevitably find a cost-effective solution among today’s Mini Excavators.

In Most parts of the world, especially in the developed markets, Mini excavators have a dominating presence in entry-level equipment category. However, in India, the Backhoe loader was introduced very early and has been culturally accepted as the entry-level equipment in the construction industry. Hence, this shift is expected at a much slower pace.

Tata Hitachi: Focused on Sales Target

Rental rates seem to be the same as they were 2-5 years ago. What is your observation?
I wouldn’t exactly say so, because if this was the case then the rental market wouldn’t have gone up. There are new and upgraded models on the market, and their price has gone up along with the construction base price. Rental companies are now charging per day of usage instead of per hour as was the practice earlier.

In the case of the backhoe loader, we have observed that since its price has gone up by 20% post BSIV, the rental profit margins have fallen. In such a scenario, rental operators are delaying buying new backhoes and are opting for the refurbishment of their existing machines.

In our recent interview with Mr. Gadkari, he discussed alternate fuels like electric and hydrogen and the technologies being used in construction equipment. Do you see any breakthrough in alternate fuel usage in the next five years?
Unlike Passenger car manufacturers like Maruti which have increased production of cars with CNG, construction equipment will take time to develop. At Tata Hitachi, we have started developing dual-powered machines with CNG as an alternative fuel in addition to diesel-powered engines. But we need adequate charging infrastructure to make the concept viable. At Tata Hitachi, we have used the EXCON as a platform to showcase our technical capabilities in terms of a CNG-powered Backhoe loader in the 11th edition and a 20-Ton Hybrid Excavator in the previous edition. Technology is available, however, the infrastructure push from the government is required.

How is Tata Hitachi’s export business doing?
Tata Hitachi’s export business is limited by our agreement with Hitachi Construction Machinery (HCM), Japan. As per that we can export to SAARC nations apart from select countries in Africa and the Middle East. Also, we undertake contract manufacturing for HCM. Overall, we are exporting about 400-500 units to these markets. The markets of Sri Lanka, and Nepal, where we were exporting around 200 units of equipment, crashed this year.

What about your domestic sales?
Despite the stiff competition, we are confident that customers will opt for Tata Hitachi’s high-quality machines for their sturdy, robust structure and we will achieve our target sales and growth. We have recently launched new products like the 5-ton Wheel loader, the 3-ton Mini Excavator, and a 20-ton Hydraulic Excavator – all of which come with upgrades.

Almost every country is experiencing inflation and there is a lot of volatility in the markets (further compounded by the Ukraine-Russia war). Although the Indian Government has announced huge investments in infrastructure development, do you think we will see some growth in the CE Industry in FY 23?
It is an alarming situation, no doubt. But as per my experience, as long as there is high domestic demand, India will not be affected very badly. However, inflation in our country needs to be controlled along with the rising commodity prices.

The government is the main anchor for growth through increased Capex in infrastructure. A 35% increase in Capex was announced for this fiscal with water supply, railways, PMGSY, and Swachh Bharat Mission seeing a significant increase in allocation. Add to this, NHAI is focusing more on constructing larger multilane highways through HAM & auctioning completed EPC projects through InVits & ToT. Further, they are monetizing projects through SPVs.

The real estate sector which has been lying low for many years now has bottomed out in most parts of the country & is now looking up. With increased urbanization & the growth of the high-paying IT sector, demand for housing in metros is showing significant improvement & is expected to continue. With new investments coming through the various PLIs announced, this is expected to further grow, adding to the demand for stone aggregates, sand, iron, steel, and cement.

All these demand drivers should help in pushing investments in these sectors to revive the CE industry. However, timely execution of all these projects is very important to drive growth in the CE industry
Backhoe Loader An All-Time Performer
The demand for Backhoe Loader is here to stay, which is clearly visible in the 2nd half of FY23 sales numbers and in the 1st quarter of FY24 sales figures. This is despite many stumbling blocks in the past few years like GST, the Covid pandemic, the hike in

Read more ...

Deepak Shetty - CEO & Managing Director, JCB India
“We are continuously tapping opportunities to reduce costs for our customers; over the past three years, we have introduced more fuel-efficient and low-maintenance products which has led to a significant improvement in the Total Cost of Ownership

Read more ...

BKR Prasad - Tata Hitachi
“We are working on several marketing strategies: we are expanding our backhoe loader product line, diversifying our product portfolio by introducing new types of equipment and entering related markets, and are also increasing our presence in export

Read more ...

Puneet Vidyarthi - CASE Construction Equipment
“By investing in research and development, we aim to enhance the features, performance, and efficiency of our backhoe loaders so that the improved products align with the evolving industry requirements.” Puneet Vidyarthi, Head – Marketing

Read more ...

Hafeez Khan - MD, Manitou South Asia
“We are committed to offer our world class backhoe loader with the most reliable components, lowest cost of ownership, best fuel efficiency, and technical support, through our vast dealership network and own SSPs.” Hafeez Khan, Managing Director

Read more ...

Manish Handa - Action Construction Equipments India
“We constantly review market trends so that we can realign our business to meet customer demands, make improvisations in our machines to enhance their performance, and expand our dealer network to better service the end-users of our

Read more ...

Suraj Prakash Verma - Escorts Kubota India
“In the competitive market landscape, Escorts Kubota India introduces the Digmax Super – a symbol of innovation and efficiency. This advanced backhoe loader not only enhances power and fuel efficiency, but also offers versatility across terrains and

Read more ...

Excavator - Manufacturers Developing Technologically Sophisticated Equipment for Higher Fuel Efficiency & Productivity
Envisaging high demand this fiscal, excavator manufacturers are designing and developing more advanced equipment that meets end-users’ expectations for higher fuel efficiency and productivity. Improvements are being made in the motors and hydraulic

Read more ...

Kobelco: A Strong Contender in the Excavator Market
E. Moses, Vice President & National Head - Excavator Division, at Kobelco India, informs that the company plans to be active in the mining industry with its higher capacity, robust Excavators, and aims to further strengthen its brand value by setting up

Read more ...

Tata Hitachi - Delivering Higher Productivity
Tata Hitachi is harnessing its strong, localized manufacturing and design competence to enhance productivity, while lowering the life cycle costs of its customers, avers BKR Prasad, General Manager, Marketing, Tata Hitachi. Tata Hitachi India is banking

Read more ...

Volvo CE: Building Value
Dimitrov Krishnan, MD, Volvo CE India, informs that foreseeing demand for excavators to remain buoyant during FY 23-24, the company is gearing up to promote its products across various industrial projects. Excavators are highly versatile

Read more ...

JCB India - Driving Innovative New Solutions
With the launch of several new excavator models, JCB India is widening its market presence in the 21-ton and above class of excavators for use in infrastructure construction, mining, and quarrying, informs Deepak Shetty, CEO & MD, JCB India

Read more ...

CASE India’s Unstoppable Innovations & Developments
According to Puneet Vidyarthi, Head of Marketing and Business Development, India & SAARC, CASE Construction India, the company’s two newly launched Crawler Excavators - CX220C and CX220C LC - have already proved their reliability, efficiency, and

Read more ...

Schwing Stetter India Widening Presence
V. G. Sakthikumar, Managing Director, Schwing Stetter India, outlines the company’s strategies to drive sales and expand the brand’s presence across industries. We have a three-pronged strategy to drive sales of our 7-10-20 ton class of excavators. One is

Read more ...

Liugong India: Staying Competitive
Nischal Mehrotra, Vice President,Liugong India, informs that the company is making design and technological advancements in its products to stay ahead in a highly competitive market. In India, demand for excavators will continue to be driven by the

Read more ...

Five Equipment Dealership Trends that will Shape 2023-24
If you have been working around construction equipment you have probably heard of the “Equipment Triangle,” a philosophy that is one of the fundamental tenets of the Association of Equipment Management Professionals (AEMP). The theory

Read more ...

Tata Hitachi Construction Machinery - Aao Kartavya Nibhaye, Chalo Desh Banaye
Tata Hitachi Construction Machinery - a joint venture between Tata Motors Limited (40 percent) and Hitachi Construction Machinery Limited (60 percent), has been an integral part of India’s growth story for more than six decades. The organization’s

Read more ...

Caterpillar organizes customer meeting; showcases latest range of large hydraulic excavators
Caterpillar Inc., world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, along with long-standing Cat® dealer Gmmco, organized a one-day

Read more ...

Construction Equipment sales cross 1 lakh mark in FY 2022-23 To grow 15-20% this Fiscal
The Indian Construction Equipment industry recorded an excellent 26% growth YoY with sales crossing the one lakh unit mark in FY2022-23. CE sales in Q4 of FY23 (Jan-Mar 2023) increased by 23% over Q4-FY22 and by 22% over Q3-FY23. On a month-on

Read more ...

Case India: Building Competence
Case Construction India is banking on its recently launched 770 NXe Loader Backhoe, the 770EX Tractor Backhoe Loader, and CX 220LC Tracked Excavator, to mark a stronger presence in the highly competitive Indian Construction Equipment market. P.P. Basistha

Read more ...