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Indian Construction Equipment Industry witnessed 26% Sales Growth

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Indian Construction Equipment Industry witnessed 26% Sales Growth

The Indian Construction Equipment (CE) business has experienced a 26% growth in overall sales volume for FY 2023–24, surpassing all forecasts and setting yet another record. Total equipment sales have crossed 1,35,650 units as opposed to 1,07,779 lakh units in FY23. The industry’s stellar yearly performance may be attributed to increases in demand in both the local and export markets of 24% and 49%, respectively.

The main factor driving the CE industry’s present high-growth trajectory has been the government’s concentration on the infrastructure sector through higher budgetary outlays and other incentives. In addition to the growing demand brought about by the National Infrastructure Pipeline projects, industry and policymakers’ efforts to increase the capability and competitiveness of homegrown manufacturers and establish India as a global hub for manufacturing are paying off, as evidenced by the significant increase in exports, said V. Vivekanand, President of ICEMA and MD of Caterpillar India.

With an eye toward the goals of Viksit Bharat 2047, ICEMA is proud to be a partner in the efforts to shape India’s future. In order to achieve net zero emissions, ICEMA is also trying to improve jobsite safety, incorporate sustainability into equipment, and provide solutions for creating world-class infrastructure, he continued.

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“There is an increasing demand for infrastructure development, urbanization, and industrialization as a result of rising budgetary allocations,” stated Deepak Shetty, CEO & MD of JCB India and President Designate of ICEMA. The rural economy has emerged as a powerful development engine for the CE sector, which coupled with other factors has encouraged the industry to register notable growth during FY24. The country’s economic and social development can be greatly aided by the CE industry, which also has the potential to become a global leader in the field.

According to Deepak Shetty, CEO & MD of JCB India and President Designate of ICEMA, “there is an increasing demand for infrastructure development, urbanization, and industrialization as a result of rising budgetary allocations.” The CE sector has found that the rural economy is a potent development engine. This, along with other factors, has propelled the industry to record significant growth in FY24. The CE sector, which has the potential to become a global leader in the field, can significantly contribute to the economic and social growth of the nation.

Convener of the ICEMA Industry Analysis & Insights Panel and VP & Managing Director – APAC & EMEAR, Terex India, Jaideep Shekhar, stated that “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.” He said, “The exceptional success of the CE industry in FY’24 featured a rise in mining activities as well as an increase in construction activity in other areas like urban infrastructure, rural, waterworks, airports, and ports.

Highlights

  • Sales of construction equipment increased by 49% in exports and 24% in domestic sales in FY24.
  • The only segment to experience negative growth in FY23 was road construction equipment, which saw a remarkable comeback in FY24, selling 6,571 units, a 40% rise from 4,828 units sold in FY23. Railway line laying averaged 14 km/day during the year, while highway development reached 34 km/day.
  • The pre-election boost to ongoing projects and the government’s infrastructure-led growth goal resulted in growth in each of the five major CE categories.
  • Sales of material processing equipment rose by 8% to 2,625 units in FY24 from 2,429 units in FY23.
  • The largest segment, earthmoving equipment, saw a 21% increase in total sales to 93,531 units in FY24 from 77,164 units sold in FY23. This amounted to almost 70% of all sales in FY24. The majority of the rise in this area was attributed to the sales of backhoe loaders, which accounted for 90% of all sales of earthmoving equipment, and crawler excavators, which accounted for 35% and 55% of the growth in sales, respectively.
  • In FY24, the combined YoY rise for concrete equipment—concrete mixers, batching plants, concrete pumps, and boom pumps—was 19%.
  • Material handling equipment, which includes telehandlers and pick-and-carry cranes, saw a 61% increase in sales volume in FY24 and contributed 14% of all CE sales as opposed to 9% in FY23.

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