Construction Equipment Sales Hit 3-Year High Due to Infrastructure Growth

How Infrastructure Spending is Driving Industry Growth

India's construction equipment industry has achieved its highest sales and exports in three years, thanks to increased government spending on infrastructure projects. According to data from the Indian Construction Equipment Manufacturers’ Association (ICEMA), the industry recorded 98,970 units sold in the first nine months of FY25, marking a 5% rise from 94,685 units in the same period last year and a 34% jump from 73,795 units in FY23.

Key Highlights of the Construction Equipment Industry Growth

there are some key factors to be consider 

Record Domestic Sales and Exports

• The industry clocked 98,970 units in April-December 2024, surpassing the previous years.
• Domestic sales in Q3FY25 reached 35,835 units, up from 33,135 in Q3FY24 and 25,565 in Q3FY23.
• Exports hit 9,733 units, the highest in three years, up from 9,181 in 2023 and 5,700 in 2022.

Quarterly Performance

• Q3FY25 saw the best performance, with 35,835 domestic units sold.
• Q2FY25 recorded 27,382 units in domestic sales and 3,304 in exports.
• Q1FY25 saw 26,020 units in domestic sales and 2,882 units in exports.

Factors Behind the Growth

Several reasons contributed to the rise in construction equipment sales:

• Government Focus on Infrastructure: Increased investments post-election have boosted demand.
• End of Monsoon Season: With construction activities resuming, demand for machinery surged.
• Pre-Buying Ahead of New Emission Norms: The upcoming CEV V emission standards in January 2025 led to pre-purchase orders.
• New Product Launches: Manufacturers introduced various new models, attracting more buyers.

Expert Statements

V Vivekanand, President of ICEMA and MD of Caterpillar India, stated, “With the continued focus on infrastructure spending in the recent budget, there is good optimism for demand to further strengthen in the coming quarters.”

Future Outlook

The Indian construction equipment industry is poised for continued growth, with infrastructure projects and new policies driving demand. Industry experts expect sales to maintain an upward trend in the coming quarters, further strengthening India's position as a key player in the global construction equipment market.

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