Construction Equipment Industry Hits Three-Year High in Domestic and Export Sales: ICEMA

India’s construction equipment industry logged its best sales numbers in three years thanks to record government spending on infrastructure projects. In the first nine months of the 2024-25 fiscal, the industry, according to data shared by the Indian Construction Equipment Manufacturers’ Association (ICEMA), recorded 98,970 units, up 5% from 94,685 units during the same period last year and 34% from 73,795 units in 2022.

Exports also recorded fair numbers at 9,733 units, the highest in three years. This figure stood at 9,181 units in 2023 and only 5,700 units in 2022 this development underscores the rising global demand for Indian construction equipment.

The quarterly numbers (Oct-Dec 2024 quarter, Q3FY25) were especially robust, with domestic sales at 35,835 units, better than 33,135 units in Q3FY24 and 25,565 units in Q3FY23. Exports also showed growth with 3,547 units being shipped which is higher than the 3,452 units exported in Q3FY24, and the 2,252 units exported in Q3FY23.

A quarterly comparison further highlights the sector’s momentum. Domestic sales in Q3FY25 were higher than their Q2FY25 and Q1FY25 figures of 27,382 units and 26,020 units, respectively. Exports in Q3FY25 stood at 3,547 units vs 3,304 and 2,882 units in Q2FY25/Q1FY25 respectively.

Based on the 2024 growth trend, ICEMA offers several contributing factors for sales growth, including government focus on infrastructure development that will be sustained post-elections, a demand surge in the post-monsoon period, pre-buying activity ahead of the rollout of the CEV V emission standards schedule in January 2025, and launch of several new construction equipment models.

“With the recent budget allocation for sustained infrastructure investment, we are confident that demand will continue to strengthen in the subsequent quarters,” V. Vivekanand, President of ICEMA and Managing Director of Caterpillar India said.

With infrastructure development being a remarkable contribution towards economic growth, the construction equipment industry is set to grow further with strong domestic demand with increased global acceptance of machinery manufactured in India.