India’s Construction Equipment Industry Hits Record Growth

Chennai, Dec 4 (KNN) India’s construction equipment (CE) industry has recorded its highest-ever year-on-year growth from April to October 2024, propelled by increased government infrastructure spending and a sharp rise in exports.

According to the Indian Construction Equipment Manufacturers’ Association (ICEMA), the industry registered cumulative sales of 73,845 units in this period, compared to 71,235 units in 2023 and 55,832 units in 2022—a remarkable 32 per cent jump from 2022 levels. Exports also surged, rising from 4,139 units in H1 2022 to 7,348 units in H1 2024.

This strong performance came despite a typically lean period for the industry, compounded by monsoons and election-related slowdowns in Q2. “H2 is when demand traditionally accelerates, so we anticipate even better results in the November to April period,” said ICEMA President and Caterpillar India MD, V. Vivekanand.

Domestic demand has been buoyed by increased government infrastructure spending, which has seen year-on-year growth. 

“Unlike in the past, where one or two segments drove the market, all five key segments—road construction, earthmoving, concrete, material handling, and material processing equipment—are experiencing growth due to a variety of multimodal projects,” Vivekanand added.

Segment-wise, road construction equipment grew 5 per cent year-on-year (YoY) and 65 per cent compared to H1 2022, while earthmoving equipment was up 7 per cent YoY and 31 per cent from H1 2022. 

Concrete equipment saw marginal YoY growth of 1 per cent but was 18 per cent higher than H1 2022. While material handling dipped 12 per cent YoY, it recorded a 55 per cent increase compared to H1 2022.

Exports remain a standout, driven by India’s compliance with global safety and emission standards. “We are exporting to over 120 countries, and not just emerging markets. With the global 'China Plus One' strategy, Indian manufacturers are seizing opportunities as China’s dominance wanes,” said Vivekanand.

With Stage V emission norms set to take effect in January 2025, manufacturers are already aligning, further strengthening India’s global competitiveness. 

Exports, which were under USD 500 million five years ago, are expected to touch nearly USD 1 billion this year, according to ICEMA.

(KNN Bureau)