The construction equipment industry has experienced its highest sales volumes in three years, driven by increased government spending on infrastructure projects. Domestic and export sales have surged significantly in the April-December 2024 period, according to the latest data from the Indian Construction Equipment Manufacturers' Association (ICEMA).

During the first nine months of the current fiscal year, the industry sold 98,970 units, a 5% increase from the 94,685 units sold during the same period in 2023, and a 34% rise from 73,795 units in 2022.

Exports also reached a three-year high, with 9,733 units shipped, surpassing 9,181 units in 2023 and 5,700 units in 2022.

The third quarter of FY25 saw the strongest performance in both domestic and export sales. Domestic sales reached 35,835 units, an increase from 33,135 units in Q3FY24 and 25,565 units in Q3FY23. Export figures also showed growth, with 3,547 units exported, up from 3,452 units in Q3FY24 and 2,252 units in Q3FY23.

When compared sequentially, Q3FY25 outperformed previous quarters, with Q2FY25 recording 27,382 units in domestic sales and 3,304 units in exports, while Q1FY25 saw 26,020 units in domestic sales and 2,882 units in exports.

ICEMA attributes this growth to several key factors, including ongoing government investment in infrastructure development, the conclusion of the monsoon season, pre-purchasing activity ahead of the implementation of the new CEV V emission standards in January 2025, and the launch of various new models of construction equipment.