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Although the performance of the industry has improved so far this fiscal year, worries about the road construction sector, which is our single largest end-user segment, persist, according to Dimitrov Krishnan, President of ICEMA and MD of Volvo CE India Pvt Ltd. Despite the road construction equipment segment’s lacklustre performance, the industry as a whole sold 22,941 units from July to September of this year as opposed to 21,323 units during the same time previous year.
Sales in the second quarter were roughly at the same level as in the first quarter when compared on a quarterly basis. This is mostly due to this year’s July and August sales growth being less rapid month to month. Sales increased by 45% over August 2022, signalling a robust industry recovery in September.
Nearly three-fourths of the total sales were accounted for by the Earthmoving segment, which had a 46% increase in sales from August to September of this year. Concrete equipment saw a 62% increase in sales, and material handling equipment saw a 33% increase. In September 2022, the CE industry sold 4,036 Backhoe Loaders and 2632 Crawler Excavators, up 52% and 43% YoY, respectively.
A decrease in monsoon activity during the month, which helped boost building operations in the nation, as well as an increase in State level spending on infrastructure were some of the major variables influencing equipment sales in September 2022. In addition, there was a rise in National Highway construction in September 2022. National Highways were built for a total length of 647km during the month, a 38% YoY increase. However, it is concerning that the rate of highway construction in H1, FY23, is still less than 20 km per day.
Krishnan encouraged the government to take action to guarantee that a faster rate of highway development is maintained throughout the year, which will assist establish a sustainable demand for construction equipment, on behalf of the Indian CE industry. The sector would be able to better plan how to meet the growing demand for construction equipment if there was a clear roadmap for all the planned infrastructure projects, the speaker continued.
We are pleased to see the sector picking up steam in September, with all segments recording strong growth, according to V G Sakthikumar, convener of the ICEMA Industry Analysis and Insights Panel and MD of Schwing Stetter India Pvt Ltd. Although the industry is optimistic that this rise will continue into the third quarter given the impending holiday season, there are still some concerns due to the abrupt increase in rainfall during the first week of October. Both domestic and international markets did better in September.
Group Media Publication
Construction, Infrastructure and Mining
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