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Construction Equipment Industry registers 3% growth in H1 FY25

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Construction Equipment Industry registers 3% growth in H1 FY25

The Indian Construction Equipment (CE) industry witnessed a 3% year-on-year (YoY) increase in sales during the first six months of the current fiscal year FY25 (April – September 2024), as compared to the same period in FY24 (April – September 2023).

The industry experienced a modest 1% year-on-year growth in sales during the second quarter of FY25, touching a total of 30,686 units. Domestic sales accounted for 27,382 units, while exports totalled 3,304 units. The Earthmoving Equipment segment witnessed a 6% increase in sales during the same period. However, growth of the Road Construction and Material Processing Equipment segments remained relatively unchanged, and the Material Handling and Concrete Equipment segments experienced degrowth of 17% and 10%, respectively.

“The industry has seen a moderate growth YoY which is on expected lines due to general elections as well as seasonality”, said V. Vivekanand, President, ICEMA and Managing Director, Caterpillar India. “This has been possible due to the ongoing construction activities in the country that have helped maintain demand for construction equipment from a historically the best previous year,” he added.

As compared to Q1 FY25, the CE industry witnessed a 6% increase in overall sales, expanding from 28,902 units in the first quarter to 30,686 units in the second quarter of the current fiscal year. This growth was primarily attributable to a 10% increase in sales of Earthmoving Equipment, which constitutes approximately 70% of the total CE sales.

The Q2 sales of Earthmoving Equipment stood at 21,931 units – an increase of 10% from Q1 FY25. Material Processing Equipment, with sales of 661 units registered a 5% growth, while sales for the remaining three segments declined in Q2 as compared to Q1 – Material Handling Equipment by 1% at 3,713 units, Concrete Equipment by 5% at 3,042 units, and Road Construction Equipment by 8% at 1,339units.

Construction Equipment Sales Registered 34% MoM; 5% YoY Growth in September ‘24
The industry’s performance has been good in September 2024, with sales touching 12,639 units as compared to 9,427 units sold in August 2024, exhibiting an impressive 34% month-on-month growth. Domestic sales accounted for 11,318 units, while exports totaled 1,321 units. Furthermore, as compared to September 2023, these sales figures represent a 5% year-on-year growth in September 2024.

Of the five primary equipment segments within the Indian CE industry, only Material Processing Equipment experienced a modest 2% decline in sales on a month-over-month basis in September 2024. The remaining four segments demonstrated robust growth: Earthmoving Equipment recorded a 32% increase, reaching 9,089 units; Material Handling Equipment grew by 47%, totaling 1,491 units; Road Construction Equipment experienced a 55% increase, reaching 598 units; and Concrete Equipment saw a 33% growth, with sales of 1,232 units.

“The overall sales recovery in the second quarter after relatively slow growth in the first quarter is encouraging for the industry. The sales recorded in September have largely been responsible for this growth,” said Jaideep Shekhar, Convener, ICEMA Industry Analysis and Insights Panel, and VP & Managing Director, APAC & EMEAR, Terex India. “With ongoing and some new infrastructure projects being announced in recent months, the industry is expecting the market for construction equipment to expand further this year, helping us to close on a positive growth in FY25,” he added.

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