Construction Equipment Sales Drop 21% in January as Infrastructure Execution Slows

India’s construction equipment industry opened 2026 on a subdued note, with retail sales declining 21 per cent year on year in January. The downturn highlights the impact of slower infrastructure execution, moderated road construction activity and cautious capital spending across the sector.

Industry data shows total retail registrations at 6,834 units in January 2026 compared with 8,660 units in the corresponding month last year. The contraction was broad based, with all twelve major manufacturers reporting lower volumes, underlining that the weakness was not limited to a single company or sub segment.

The slowdown is largely attributed to reduced pace in road construction, which contributes nearly 40 per cent of total equipment demand in India. Compared with last year, execution speed has moderated as project awards slowed and mobilisation timelines extended across several key sites. This has directly impacted fresh procurement decisions by contractors.

An erratic monsoon further disrupted the usual post monsoon ramp up in infrastructure activity, affecting equipment utilisation levels nationwide. With fleet additions remaining strong in previous financial years, utilisation is yet to fully return to earlier peaks, prompting many fleet owners to defer expansion plans.

Market leader JCB India reported lower volumes during the month but maintained a dominant share, reflecting consolidation within the market rather than structural fragmentation. Other leading manufacturers also registered declines, reinforcing the sector wide nature of the demand softness.

Despite the weak start, industry executives expect gradual stabilisation if government spending gathers pace and project clearances accelerate in the coming quarters. Timely award of contracts and stronger on ground execution could help revive sentiment and restore purchasing confidence among contractors and dealers.

While January numbers indicate short term pressure, the medium term outlook remains linked to sustained public capex, improved project delivery and steady infrastructure pipeline execution. Analysts believe demand could recover progressively as pending projects gain traction and new investments translate into measurable on site activity.