Indian construction equipment industry records 26% sales growth in FY24
With total equipment sales crossing 1,35,650 units as against 1,07,779 lakh units in FY23, the Indian construction equipment (CE) industry has recorded 26% increase in overall sales volume for the financial year 2023-24, a statement issued by Indian Construction Equipment Manufacturers Association (ICEMA) said. The industry witnessed significant increase in demand in both domestic as well as exports markets, by 24% and 49% respectively.
“Besides the increasing demand generated by the projects in the National Infrastructure Pipeline, the endeavours undertaken by the industry as well as policymakers to build capacity and competitiveness of domestic manufacturers and become a global hub for CE is showing results, with exports witnessing a strong growth,” said V. Vivekanand, President, ICEMA and Managing Director, Caterpillar India.
Deepak Shetty, President Designate, ICEMA and CEO & MD, JCB India said, “As a result of rising budgetary allocations there is increasing demand for infrastructure development, urbanisation and industrialisation, but at the same time, it is also very heartening to see the rural economy emerge as a strong growth driver for the CE industry, which together, helped the industry to record significant growth during FY24.”.
Jaideep Shekhar, Convener, ICEMA Industry Analysis & Insights Panel and VP & Managing Director – APAC & EMEAR, Terex India said, “The pre-election push, in the form of the enhanced pace of implementation of infrastructure projects in the pipeline, along with awarding of a record number of new projects resulted in a significant increase in demand for construction equipment, and was the primary factor behind the growth.”
Total sales of earthmoving equipment – the largest equipment segment of the CE industry – increased to 93,531 units in FY24, which is 21% higher than 77,164 units sold in FY23, accounting for approximately 70% of the total construction equipment sales in FY24.
Material Handling Equipment including Pick & Carry Cranes and Telehandlers, recorded an impressive 61% growth in sales volume in FY24, and accounted for 14% of total CE sales, as compared to 9% in FY23.
Concrete Equipment such as Concrete Mixers, Batching Plants, Concrete Pumps and Boom Pumps together recorded a 19% YoY increase in FY24 whereas Road Construction Equipment, which was the only segment with negative growth in FY23, made a spectacular recovery in FY 24 by selling 6,571 equipment units – a 40% increase from 4,828 units sold in FY23.
Further, Material Processing Equipment sales increased to 2,625 units in FY24 – an 8% growth over 2,429 units sold in FY23.
ICEMA is the nodal body representing the CE industry (OEMs, suppliers and FIs) in the country and is affiliated to Confederation of Indian Industry (CII).
