Whalesbook
Domestic Market Pressures
While overall sales dipped slightly, the domestic market faced a tougher 7% contraction, falling to 1,13,229 units. Deepak Shetty, President of the Indian Construction Equipment Manufacturers' Association (ICEMA), blamed the slowdown on long land acquisition processes and delays in project payments. Despite significant government spending on infrastructure, these on-the-ground execution problems limited equipment demand throughout the fiscal year.
Resilience Through Exports
The 32% surge in exports provided a positive sign, showing the growing global appeal and quality of Indian-made construction machinery. This strong export performance signals healthy international demand and boosts the sector's resilience against domestic ups and downs. Shetty remains confident in the industry's long-term growth, backed by India's strong focus on infrastructure development.
Segment Performance
Earthmoving equipment, the largest segment at 71% of sales (97,236 units), saw a 2% year-on-year drop. Material handling equipment dropped significantly by 10%, while concrete equipment sales were largely stable. Road construction equipment (+6.3%) and material processing equipment (+1.2%) showed positive growth, indicating some strong areas within the sector.
Headwinds and Outlook
Other domestic demand challenges included a seven-year low in national highway construction, slower progress on the Jal Jeevan Mission, and contractor payment delays affecting liquidity. New, tougher CEV Stage V emission rules starting January 2025 also raised equipment costs. Rising global commodity prices, especially crude oil, also contributed to higher costs. Shalabh Chaturvedi, Vice President of ICEMA, stressed that timely project execution, quicker on-ground work, and better contractor cash flow are essential to bring back growth.