Construction Equipment Sales Grow 5% in Q1 FY24-25 Amid Seasonal Slowdown

Construction equipment sales increased by 5% in Q1 FY 2024–25, reaching 28,902 units, driven by a 5% rise in earthmoving, road construction, and concrete equipment, but saw declines in material handling and processing equipment. Q4 FY 2023–24 sales dropped 29% from 40,965 units, with Earthmoving Equipment, comprising 70% of total CE sales.

experiencing a 31% decline, along with other segments. The first quarter of the financial year is traditionally slower due to seasonality and the general elections in India, but the industry is hopeful that demand momentum will resume after the monsoon. In Q1 FY25, 28,902 units of construction equipment were sold domestically, with 26,020 units in the domestic market and 2,882 exported, with Earthmoving Equipment selling 19,858 units.

The Indian construction equipment (CE) industry experienced a 5% increase in sales in Q1 2024–25, despite the general election impact, according to Jaideep Shekhar, convener of the ICEMA Industry Analysis and Insights Panel and VP & Managing Director of Terex India Private Limited. Sales in June 2024 decreased by 2% compared to May.

but increased by 5%. Earthmoving and concrete equipment saw growth, while Material handling, road construction, and material processing equipment saw reduced sales. The Indian CE industry is optimistic about its accelerated growth this year, driven by new technologies, localization, and policies attracting foreign investment.

Construction Equipment Sales Grow 5% in Q1 FY24-25 Amid Seasonal Slowdown

Despite seasonal challenges, India’s construction equipment market saw a 5% growth in sales during the first quarter of FY24-25. This steady increase highlights the sector’s resilience, driven by ongoing infrastructure projects and sustained demand across key industries.

Market Performance & Key Drivers

The 5% growth in Q1 was largely supported by:

• Government Infrastructure Push: Major highway, railway, and urban development projects contributed to steady equipment demand.
• Urbanization & Industrial Expansion: Increased construction activities in urban centers fueled equipment procurement.
• Technological Advancements: Adoption of modern, fuel-efficient, and automation-integrated equipment enhanced sales.

Segment-Wise Growth Trends

Different categories of construction equipment performed variably during the quarter:

• Excavators & Earthmovers: Witnessed steady demand due to large-scale mining and construction activities.
• Road Construction Machinery: Sales saw a moderate uptick, supported by highway expansion projects.
• Material Handling Equipment: Growth remained stable, driven by increased warehousing and logistics activities.

Challenges Faced by the Industry

While the sector experienced growth, certain factors posed challenges:

• Monsoon Impact: Seasonal slowdowns affected outdoor construction activities, slightly tempering demand.
• Rising Input Costs: Fluctuating raw material prices and supply chain disruptions pressured manufacturers.
• Financial Constraints: Higher borrowing costs impacted small and medium construction firms.

Future Outlook

Industry experts anticipate sustained growth in the coming quarters, supported by:

• Government Initiatives: Continued focus on infrastructure development under various central and state programs.
• Private Sector Investments: Increasing participation of private players in industrial and commercial construction.
• Technological Integration: Adoption of AI, IoT, and automation in equipment to enhance efficiency and reduce operational costs.

With robust policies and technological advancements, India’s construction equipment sector is poised for steady expansion, reinforcing its role in the nation’s infrastructure growth.

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