Indian Construction Equipment Industry Witnesses 26% Sales Growth
With total equipment sales crossing 1,35,650 units as against 1,07,779 lakh units in FY23, the Indian Construction Equipment (CE) industry has recorded a 26% increase in overall sales volume for FY 2023-24, surpassing all projections and setting yet another record. The industry’s excellent annual performance is due to the 24% and 49% increase in demand in domestic and exports markets, respectively.
"The Government’s emphasis on the infrastructure sector with increased budgetary outlays and other incentives has been the primary force propelling the CE industry on its current high-growth trajectory. Besides the increasing demand generated by projects in the National Infrastructure Pipeline, the endeavours undertaken by the industry as well as policymakers to build capacity and competitiveness of domestic manufacturers and become a global manufacturing hub is showing results, with exports witnessing a strong growth,” commented V. Vivekanand, President, ICEMA and MD, Caterpillar India.
“In view of the targets of Viksit Bharat 2047, ICEMA takes pride in partnering in the endeavours for Shaping India’s Tomorrow. ICEMA is also working towards enhancing safety at jobsites, bringing sustainability in equipment to attain net zero emissions, and developing solutions for building world-class infrastructure,” he added.
Deepak Shetty, President Designate, ICEMA and CEO & MD, JCB India, said, “As a result of rising budgetary allocations there is increasing demand for infrastructure development, urbanisation and industrialisation. At the same time, it is also very heartening to see the rural economy emerge as a strong growth driver for the CE industry, which together, helped the industry to record significant growth during FY24. The CE industry has significant potential to contribute to the country's economic growth and social development, and to also emerge as a global leader in the sector.”
“The pre-election push for faster implementation of infrastructure projects, and awarding a record number of new projects, has led to a significant increase in demand for construction equipment, and the resultant record sales,” said Jaideep Shekhar, Convener, ICEMA Industry Analysis & Insights Panel, and VP & Managing Director - APAC & EMEAR, Terex India. “The stellar performance of the CE industry in FY’24 included an increase in construction activity in other sectors like urban infrastructure, rural, waterworks, airports and ports, and an upswing in mining activity,” he added.
"The Government’s emphasis on the infrastructure sector with increased budgetary outlays and other incentives has been the primary force propelling the CE industry on its current high-growth trajectory. Besides the increasing demand generated by projects in the National Infrastructure Pipeline, the endeavours undertaken by the industry as well as policymakers to build capacity and competitiveness of domestic manufacturers and become a global manufacturing hub is showing results, with exports witnessing a strong growth,” commented V. Vivekanand, President, ICEMA and MD, Caterpillar India.
“In view of the targets of Viksit Bharat 2047, ICEMA takes pride in partnering in the endeavours for Shaping India’s Tomorrow. ICEMA is also working towards enhancing safety at jobsites, bringing sustainability in equipment to attain net zero emissions, and developing solutions for building world-class infrastructure,” he added.
Deepak Shetty, President Designate, ICEMA and CEO & MD, JCB India, said, “As a result of rising budgetary allocations there is increasing demand for infrastructure development, urbanisation and industrialisation. At the same time, it is also very heartening to see the rural economy emerge as a strong growth driver for the CE industry, which together, helped the industry to record significant growth during FY24. The CE industry has significant potential to contribute to the country's economic growth and social development, and to also emerge as a global leader in the sector.”
“The pre-election push for faster implementation of infrastructure projects, and awarding a record number of new projects, has led to a significant increase in demand for construction equipment, and the resultant record sales,” said Jaideep Shekhar, Convener, ICEMA Industry Analysis & Insights Panel, and VP & Managing Director - APAC & EMEAR, Terex India. “The stellar performance of the CE industry in FY’24 included an increase in construction activity in other sectors like urban infrastructure, rural, waterworks, airports and ports, and an upswing in mining activity,” he added.
Highlights
- Construction Equipment domestic sales for FY24 up by 24% and for exports by 49%.
- Government’s infra-led growth agenda and pre-election impetus on projects in the pipeline triggered growth in all five major CE segments.
- Total sales of Earthmoving Equipment – the largest segment – increased to 93,531 units in FY24 (21% higher than 77,164 units sold in FY23), accounted for approximately 70% of the total sales in FY24. In this segment, the lion’s share was accounted for 55% and 35% respective growth in sales of Backhoe Loaders and Crawler Excavators, which together made up 90% of total Earthmoving Equipment sales.
- Material Handling Equipment including Pick & Carry Cranes and Telehandlers, recorded 61% growth in sales volume in FY24, and accounted for 14% of total CE sales compared to 9% in FY23.
- Concrete Equipment such as Concrete Mixers, Batching Plants, Concrete Pumps and Boom Pumps together recorded a 19% YoY increase in FY24.
- Road Construction Equipment (the only segment with negative growth in FY23), made a spectacular recovery in FY24 by selling 6,571 units – a 40% increase from 4,828 units sold in FY23. While highway construction rate during the year touched 34 km/day, railway line laying rate averaged 14 km/day.
- Material Processing Equipment sales increased to 2,625 units in FY24 – an 8% growth over 2,429 units sold in FY23.
