Sales of construction equipment likely to grow in double digits
Equipment

Sales of construction equipment likely to grow in double digits

Sales of construction equipment are expected to increase in healthy double digits in the ongoing financial year on the back of improved government spending on infrastructure projects, mainly in rural areas.

The industry estimates construction equipment sales to increase 15%-20% in the financial year (FY) 2023, against an 8% decline in the last fiscal year. Even though exports increased 60.5% to 7,802 units in FY22, local sales declined 11.4% to 77,583 units.

Managing director at market leader JCB India, Deepak Shetty, told the media that in the last FY, the industry output dropped by around 8% due to a decline in demand for road construction and earth-moving equipment. While adding that the government’s emphasis on infrastructure investment to boost economic activity would, in turn, also help increase demand for them. But a steep incline in input costs and limitations in the supply chain are concerned, he said.

The government has budgeted a 36% upsurge in its capital spending to a record Rs 7.5 lakh crore this FY, with a special focus on infrastructure development to stimulate growth. It has expanded the scope of the National Infrastructure Pipeline to include 9,335 projects, with total envisaged Rs 108 lakh crore investments during FY20-FY25.

Among others, the scheme to provide piped drinking water to rural homes, the commencement of new metro rail development projects, the building of smart cities, and the construction of new airports at Navi Mumbai and Jewar will initiate growth in the construction equipment industry.

The PM Gati Shakti national master plan is a path-breaking move that will bring a holistic focus on infrastructure development.

He envisioned India to become the second-largest market for construction equipment by the decade's end. India is presently the third-largest industry, after the US and China.

Given the regulatory motivation worldwide toward clamping down on carbon emissions, manufacturers are mainly focusing on assessing and developing products powered by green fuels such as biofuels, CNG, and hydrogen.

Image Source

Also read: Construction equipment industry to grow in H2 of 2022: JCB India

Sales of construction equipment are expected to increase in healthy double digits in the ongoing financial year on the back of improved government spending on infrastructure projects, mainly in rural areas. The industry estimates construction equipment sales to increase 15%-20% in the financial year (FY) 2023, against an 8% decline in the last fiscal year. Even though exports increased 60.5% to 7,802 units in FY22, local sales declined 11.4% to 77,583 units. Managing director at market leader JCB India, Deepak Shetty, told the media that in the last FY, the industry output dropped by around 8% due to a decline in demand for road construction and earth-moving equipment. While adding that the government’s emphasis on infrastructure investment to boost economic activity would, in turn, also help increase demand for them. But a steep incline in input costs and limitations in the supply chain are concerned, he said. The government has budgeted a 36% upsurge in its capital spending to a record Rs 7.5 lakh crore this FY, with a special focus on infrastructure development to stimulate growth. It has expanded the scope of the National Infrastructure Pipeline to include 9,335 projects, with total envisaged Rs 108 lakh crore investments during FY20-FY25. Among others, the scheme to provide piped drinking water to rural homes, the commencement of new metro rail development projects, the building of smart cities, and the construction of new airports at Navi Mumbai and Jewar will initiate growth in the construction equipment industry. The PM Gati Shakti national master plan is a path-breaking move that will bring a holistic focus on infrastructure development. He envisioned India to become the second-largest market for construction equipment by the decade's end. India is presently the third-largest industry, after the US and China. Given the regulatory motivation worldwide toward clamping down on carbon emissions, manufacturers are mainly focusing on assessing and developing products powered by green fuels such as biofuels, CNG, and hydrogen. Image Source Also read: Construction equipment industry to grow in H2 of 2022: JCB India

Next Story
Infrastructure Urban

BorgWarner extends transfer case business with North American OEM

BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, is furthering its business with a major North American OEM by securing extensions on two transfer case contracts for upcoming vehicle launches with new platform requirements. BorgWarner will supply two types of transfer cases, including its active Electro-Mechanical On-Demand 2-Speed (EMOD) and a part-time Electric Shift-on-the-Fly 2-Speed (ESOF) transfer case. Two of the OEM’s combustion and hybrid passenger truck platforms will be equipped with the EMOD and ESOF, while an additional passenger t..

Next Story
Infrastructure Transport

CII partners with Hunch Mobility for Urban Air Mobility Expo 2025

The Confederation of Indian Industry (CII) has announced its partnership with Hunch Mobility to host the upcoming Urban Air Mobility Expo 2025. This significant event aims to showcase advancements in urban air mobility, a rapidly evolving sector that promises to revolutionize urban transportation. Scheduled for 2025, the expo will serve as a platform for industry leaders, innovators, and policymakers to converge and discuss the future of air transport within urban environments. Key topics will include technological innovations, regulatory frameworks, and infrastructure development necessary f..

Next Story
Infrastructure Urban

HCL Tech opens first delivery centre in Kochi

HCL Technologies has officially inaugurated its first delivery centre in Kochi, marking a significant expansion in its operational footprint in India. This new facility aims to enhance the company’s capabilities in delivering a wide range of technology services to its clients. The Kochi delivery centre will focus on various areas, including software development, IT services, and digital solutions, contributing to HCL's commitment to driving innovation and improving service delivery. With this initiative, HCL Tech aims to tap into the region's growing pool of skilled talent, particularly in ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000