The upward trend in the Indian construction machinery market continues with the main driving force being the country’s high infrastructure investments. After an exceptional gain of 34 per cent in 2016, the German Engineering Federation (VDMA) determined a still very considerable growth of 12 per cent for 2017.
“And also the start of 2018 was extremely positive, as the first months witnessed a strong sales performance,” reports Sebastian Popp of the Construction Equipment and Plant Engineering Association in VDMA.
The Indian Brand Equity Foundation (IBEF) provides an indicative value here. Established by the Indian Ministry of Commerce and Industry to promote the international brand and location marketing activities, the trust estimates that in the Indian fiscal year of 2018 – from April 2017 until March 2018 – almost 97,000 construction machines were sold throughout the country.
Biggest-ever highway development plan
In general, things are looking good for the second most populous nation after China worldwide. Looking at the World Economic League Table 2018 published by the Centre for Economics and Business Research, India will overtake the UK and France in terms of the gross domestic product to move two places up and become the world’s fifth largest economy in 2018.
The development in the construction machinery market is mainly driven by the State’s massive infrastructure expansion. According to the British market research company Off-Highway Research, this expansion is a top priority for the Indian Government that monitors all projects at the highest level to overcome potential obstacles as quickly as possible. At the very top of the agenda is road construction. In October 2017, the Indian politicians therefore approved the biggest-ever highway development plan to develop and expand almost 84,000 km of roads at an investment of $107 billion by 2022 – money that will also boost further sales of construction machines.
Strong market for bulldozers
Off-Highway Research, for example, believes that the sale of bulldozers in India will increase by more than 25 per cent over the next five years. According to experts, quite a few foreign companies managed to conquer significant market shares, competing with the domestic and dominating bulldozer manufacturer BEML. Also, the real estate market, primarily housing, sends out positive signals: IBEF assumes that it will grow from an estimated $126 billion in 2015 to $180 billion in 2020.
In the Indian construction machinery market, crawler excavators and backhoe loaders remain a mainstay. According to IBEF these two types are expected to account for 68 per cent of the units sold in 2018. With an increase of almost six per cent over 2015, crawler excavators are estimated to yield the highest growth rate.
To participate in the growing Indian market also in the future, many major companies in the global construction machinery industry such as Action Construction Equipment, Bauer, Hyundai, KYB-Conmat, Manitou Equipment India, Puzzolana, Schwing Stetter India, Volvo India, Wacker Neuson and Wirtgen India already registered with bauma CONEXPO INDIA to be held in Delhi from December 11 to 14.