The performance of the Construction Equipment (CE) industry was significantly better in the third quarter of the current fiscal (Q3 FY25) compared to the second quarter, with sales showing a steep increase of 28%, touching 39,382 units during October to December 2024. On a year-on-year basis, the Q3 FY25 sales were up by 8% compared to Q3 FY24.
Several factors contributed to the growth of the industry including the continued thrust on infrastructure development by the Government, the end of the monsoon season, pre-buying ahead of the implementation of the CEV V emission standards in January 2025, and the introduction of various new and sustainable variants of construction equipment which helped in attracting consumers seeking more efficient and sustainable equipment.
“The results for the third quarter of FY25 reflect the continued progress of infrastructure development leading to sustained demand for construction equipment. With the continued focus on budget on infrastructure spending in the recent budget there is good optimism for demand to further strengthen in the coming quarters”, said Mr. V. Vivekanand, President ICEMA and Managing Director, Caterpillar India Pvt. Ltd. “As the Indian CE industry progresses towards the targets of CE Vision Plan 2035 and aligns with the Viksit Bharat@2047 objectives of the Government, the industry is exploring new technologies, and developing a range of efficient and sustainable products that are further helping the demand for construction equipment to grow in the country”, he added.
Of the total Q3 FY25 sales, 35,835 units were sold in the domestic markets while 3,547 units were exported. Apart from the decline of 9% in the Material Processing Equipment sales, all other major equipment segments registered a robust Q-o-Q growth. The industry sold 28,223 units of Earthmoving Equipment – 29% more than in Q2 FY25. Material Handling Equipment sales stood at 4,790 units, registering a 29% increase. Concrete Equipment sales rose by 21% to 3,674 units. Road Construction Equipment recorded the highest surge, with sales jumping 56% to 2,094 units. The sharp increase in the Road Construction Equipment segment aligns with the commitment of the Ministry of Road Transport and Highways (MoRTH) to accelerate project awards in the second half of the fiscal year.
Overall, sales of construction equipment in the first nine months of the current financial year have increase by 5% Y-o-Y, which is remarkable for an election year. In December 2024 alone, total CE sales stood at 12,793 units, a 4% increase over the November 2024 sales level.
Mr. Jaideep Shekhar, Convener, ICEMA Industry Analysis & Insights Panel and Vice President, Managing Director, Terex India Pvt. Ltd. said, “The results for Q3 of the current fiscal are very encouraging, with good positive growth even on a year-on-year basis, especially since we usually experience overall negative growth in election years. Besides the increase in construction activity in the country owing to ongoing and new infrastructure projects, the demand for construction equipment also increased due to a rise in equipment purchases by customers to avoid anticipated increases in machinery prices post the implementation of CEV V emission standards from January 2025. Given the accelerated pace of growth in the third quarter and the overall 5% growth during April to December 2024, the industry expects to conclude the current year with nearly 5% – 8% growth.”
Mr. Vivekanand also expressed confidence in the industry’s bright future as it embraces the imperatives of higher levels of localisation, innovation, technology and sustainability. He called for better targeted policies to create an enabling environment for MSMEs, technology adoption and collaboration among the stakeholders, allowing the Indian CE industry to emerge as a major exporter and a global manufacturing hub for construction equipment.
The ICEMA Panel on Industry Analysis and Insights provides robust and credible market intelligence by collating, generating, and analysing industry data. The value-added quarterly CE Industry Report is among the several industry reports collated based on data shared by its member companies which represent about 95% of the OEMs operating in the Indian Construction Equipment industry.
ICEMA (Indian Construction Equipment Manufacturers Association) is the nodal body representing the Construction Equipment industry (OEMs, suppliers and FIs) in the country and is affiliated to Confederation of Indian Industry (CII).
