Construction Equipment Sales in India Rise 26% to 135,650 Units in FY24, Reports ICEMA

India's construction equipment (CE) industry has experienced a significant surge in sales, marking a 26% increase to 1,35,650 units in the fiscal year 2023-24. This growth is attributed to the government's focus on infrastructure development and pre-election project initiatives. The Indian Construction Equipment Manufacturers Association (ICEMA) highlighted this performance as a substantial leap from the previous year's sales of 1,07,779 units.

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The industry's robust performance is reflective of heightened demand across both domestic and international markets, with sales up by 24% and 49%, respectively. This uptick in demand has been particularly notable in the earthmoving equipment segment, which saw a 21% increase in sales to 93,531 units, making up approximately 70% of the total CE sales for FY24.

Backhoe loaders and crawler excavators, major components of the earthmoving segment, witnessed remarkable growth rates of 55% and 35%, respectively. These two categories combined accounted for 90% of the earthmoving equipment's total sales. Additionally, material handling equipment like pick & carry cranes and telehandlers saw a 61% rise in sales volume, representing 14% of the total CE market share.

Concrete equipment, including mixers, batching plants, pumps, and boom pumps, also enjoyed a positive trajectory with a 19% year-on-year growth. Meanwhile, road construction equipment bounced back from a previous downturn, recording a 40% increase in sales with 6,571 units sold in FY24.

ICEMA serves as the principal association for the CE industry in India, encompassing OEMs, suppliers, and financial institutions. It operates under the Confederation of Indian Industry (CII), playing a pivotal role in representing the sector's interests at various levels.

The data underscores the construction equipment industry's vital role in supporting India's infrastructure ambitions. The government's infra-led growth agenda continues to fuel demand across all major segments of the CE industry, setting a positive tone for future developments.