India’s CE Sales Surge 26% in FY24
India’s construction equipment industry witnessed a 26 per cent rise in sales to 1,35,650 units in the 2023-24 fiscal on the back of the government’s infrastructure-led growth agenda, a report said. As per the data released by the Indian Construction Equipment Manufacturers’ Association (ICEMA), the construction equipment (CE) industry had sold 1,07,779 units in the previous fiscal year.
“With total equipment sales crossing 1,35,650 units as against 1,07,779 lakh units in FY23, the Indian construction equipment industry has recorded a 26 per cent increase in overall sales volume for the financial year 2023-24, surpassing all projections,” it said.
The statement further said the government's infra-led growth agenda and pre-election impetus on projects in the pipeline triggered positive growth in all five major construction equipment segments.
“The industry’s excellent annual performance has been a result of significant increase in demand for construction equipment observed in both domestic as well as exports markets, by 24 per cent and 49 per cent, respectively,” it added.
The statement said the total sales of earthmoving equipment—the largest equipment segment of the CE industry—increased to 93,531 units in FY24, which is 21 per higher than 77,164 units sold in FY23, accounting for approximately 70 per cent of the total construction equipment sales in FY24.
Of this segment, the lion's share was accounted for 55 per cent and 35 per cent respective growth in sales of backhoe loaders and crawler excavators, which together make up 90 per cent of the total earthmoving equipment sales. Material handling equipment, including pick and carry cranes and telehandlers, recorded 61 per cent growth in sales volume in FY24, and accounted for 14 per cent of total CE sales, as compared to 9 per cent in FY23. Concrete equipment such as concrete mixers, batching plants, concrete pumps, and boom pumps together recorded a 19 per cent year-on-year increase in FY24.
As per the statement, road construction equipment, which was the only segment with negative growth in FY23, made a spectacular recovery in FY24 by selling 6,571 equipment units – a 40 per cent increase from 4,828 units sold in FY23.
Last year, India’s CE industry turned in its best ever performance with 26 per cent year-on-year growth in FY23 as sales crossed the one lakh unit mark driving on road construction and railway demand.
Growth in FY23 was driven by all four sub-segments of CE industry, except road construction equipment, which recorded slight de-growth of 3 per cent. In terms of product segments, a total of 77,164 units of earthmoving equipment were sold in FY23 – up 23 per cent over the 62,629 units sold in FY22.
The sales of backhoe loaders and crawler excavators, accounting for over 90 per cent of total sales of earthmoving equipment, increased by 28 per cent and 17 per cent respectively during the year.
Similarly, concrete equipment sales went up by 26 per cent to 11,787 units in FY23 on the back of an equivalent increase in sales of concrete mixers which contributed around 60 per cent of sales in this segment.
Material handling equipment segment recorded a 47 per cent jump, driven by a 25 per cent surge in sales volume of pick and carry cranes, accounting for more than 80 per cent of the total sales in this category.
Telehandler sales also more than doubled in FY23 while the material processing equipment segment consolidated its contribution to total sales with sharp growth in screeners, jaw crushers, impact crushers and cone crushers.
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