Demand Outlook Positive For Motor Graders in Road Construction & Mining
The demand momentum for motor graders is continuing, particularly in road construction and mining applications, driving manufacturers to expand their product portfolio, undertake value engineering to enhance their features, and increase sales by targeting corporate end-users, rental companies, and both big and small contractors. P.P. Basistha reports on the current market for motor graders.
The prevailing buoyancy in road construction projects sees no signs of abating, especially in view of the upcoming 2024 General elections. This has made motor graders manufacturers bullish on demand sustaining for the long term. The challenge, however, is to meet the new emission norms, find ways to absorb the resultant higher cost of the machines, and meet the demands of their customer base, in particular the sub-contractors and the rental companies. They are also not discounting possible disruptions in sales, with the higher end of the market preferring higher horsepower engines.
The manufacturers also concede that the demand outlook may be influenced by factors such as extended payment cycles from main project developers to contractors and sub-contractors. This could create financial constraints for construction companies and potentially impact decisions for investing in new equipment. Furthermore, the impending general elections could lead to a temporary slowdown in the announcement and implementation of new road projects. However, undeterred by the market scenario, motor grader manufacturers continue to strategize, build new and higher horsepower models, upgrade the existing ones, expand dealer network, and build their brand to remain competitive.
The prevailing buoyancy in road construction projects sees no signs of abating, especially in view of the upcoming 2024 General elections. This has made motor graders manufacturers bullish on demand sustaining for the long term. The challenge, however, is to meet the new emission norms, find ways to absorb the resultant higher cost of the machines, and meet the demands of their customer base, in particular the sub-contractors and the rental companies. They are also not discounting possible disruptions in sales, with the higher end of the market preferring higher horsepower engines.
The manufacturers also concede that the demand outlook may be influenced by factors such as extended payment cycles from main project developers to contractors and sub-contractors. This could create financial constraints for construction companies and potentially impact decisions for investing in new equipment. Furthermore, the impending general elections could lead to a temporary slowdown in the announcement and implementation of new road projects. However, undeterred by the market scenario, motor grader manufacturers continue to strategize, build new and higher horsepower models, upgrade the existing ones, expand dealer network, and build their brand to remain competitive.
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NBM&CW - March 2024
