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JCB India anticipates strong growth in the domestic construction equipment market, which could become the second largest globally by 2030. Industry volumes are currently around 95,000-100,000 units, down from last year due to tariff issues and export challenges, particularly with the US. JCB India expects double-digit growth next year in both domestic sales and exports, aided by robust monsoons and infrastructure investments in states like Andhra Pradesh and Maharashtra. The company is also focusing on future-ready machinery, including hydrogen-compatible equipment and a 52-tonne excavator, to meet emerging market demands.
The Indian construction equipment industry is expected to grow significantly in the coming years, with projections indicating it could surpass China to become the second largest market globally by 2030, according to JCB India CEO and Managing Director Deepak Shetty. He emphasized the need for the government to continue prioritizing infrastructure development and introduce encouraging schemes for exporters to support industry growth. Advertisement
Currently, the Indian market produces around 95,000 to 100,000 units annually, compared with China's 175,000 units and the US's 250,000 units per year. Shetty noted that the industry faced some challenges this year, resulting in a decline in volumes compared with last year. He expressed hope that the resolution of tariff issues with the US and a robust monsoon season would aid sector growth in the upcoming year.
Shetty highlighted the importance of sustained investment in infrastructure, particularly in rural areas. He suggested that state governments require adequate funding to further boost rural infrastructure projects. On the export front, he said the industry has encountered hurdles due to tariffs, and recommended that the government announce motivating schemes for exporters to help offset these challenges.
The company exports machinery to over 135 countries and Shetty stressed the importance of leveraging global trade opportunities, particularly through free trade agreements, to expand India's export footprint.
Looking ahead, the Indian construction equipment sector is expected to witness rapid growth over the next five years. Shetty pointed out that machine penetration in India remains relatively low, especially in agriculture, leaving considerable scope for expansion.
Industry estimates indicate that this year's equipment volume may decline to around 90,000 units from 100,000 units last year, affected by stalled shipments to the US due to tariff issues. JCB India experienced a contraction in overall volumes from approximately 64,500 units last year to around 57,000 units this year. Exports are expected to fall from 14,000 units, which included 10,000 to the US, to roughly 11,500 units, while domestic sales may dip from 50,000 units to around 47,000 units.
Despite the current challenges, Shetty remains optimistic about next year, projecting double-digit growth in both domestic and export markets, contingent on resolution of the US tariff situation. The robust monsoon season is anticipated to positively impact rural demand, where nearly 70% of JCB machines are sold. States such as Andhra Pradesh and Maharashtra are also contributing significantly through focused infrastructure projects.
JCB India is also investing in future-ready products, including machines compatible with hydrogen fuel and specialized equipment for the Railways and defence sectors. The company plans to launch a 52-tonne excavator, marking the largest such machine ever designed in India.
Source PTI
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