CNH: India Beats China in Manufacturing Efficiency

India's Manufacturing Advantage Grows

The manufacturing environment for construction equipment like excavators, loaders, and compactors is now more cost-effective and efficient in India compared to China. Senior executives from CNH , listed on the New York Stock Exchange, recently shared this development.

Mr. Emre Karazli, Vice President, Construction Segment, APAC at CNH, said that India’s active efforts to build a trade agreement with the United States will help Indian exporters. Speaking at the CASE Construction plant in Pithampur, Madhya Pradesh, he stated, "The way India is moving its politics towards North America will give India a competitive advantage. It is a positive development for us."

Exports From India Are Expanding

Currently, around 50% of CNH ’s construction equipment made in India is exported to more than 100 countries. These include major markets such as the United States and Europe. CNH manufactures its equipment under the CASE Construction Equipment brand at its Pithampur plant.

In addition, Karazli praised India’s manufacturing environment. He said, "The flexibility and supportive attitude we see here is perhaps better than any other construction plant we have in Europe, North America, or Latin America."

US Tariffs Create New Opportunities for India

Alongside this, Shalabh Chaturvedi, Managing Director of CASE India and SAARC, said that shipments from India to the US have not faced any big issues so far. "Earlier the tax was zero on our products in the US. Now it is 10%, but the same applies to other countries too. So, there is no major impact yet," he explained.

Chaturvedi further informed that around 10% of CASE Construction Equipment’s exports go to the United States. Referring to the increased tariffs imposed by the US government on Chinese goods, he mentioned that it can turn out to be a positive factor for Indian manufacturers.

India’s Emission Norms Boost Global Competitiveness

Chaturvedi also highlighted that India’s emission standards have now reached a global level. India is moving towards Bharat Stage V (BS-V) norms, similar to the European markets. Meanwhile, South Korea and other Asian countries, including Australia, still follow lower emission levels. North America is currently at Stage 4.

Thanks to these changes, Indian manufacturers can now export machines easily to different parts of the world. CASE Construction has already started rolling out BS-V compliant machines from its Pithampur facility.

Lower Labour Costs and Stronger Supply Chain in India

Chaturvedi added that lower labour costs further boost India’s manufacturing advantage. The average labour cost in India is around $1.5 per hour, while in China it is about $7 per hour. This big difference makes India a more cost-effective destination for manufacturing.

Perhaps earlier China had an advantage in supply chain development. However, Chaturvedi pointed out that India’s supply chain for construction equipment has improved a lot, making the country stronger in the global manufacturing race.

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