Rohit Punjabi, Vice President (Excavator Business), LiuGong India, speaks on the company’s sales pattern for earthmoving equipment.

What is the current demand trajectory for earthmoving equipment in the construction and mining sectors?

With total equipment sales crossing 1,35,650 units as against 1,07,779 lakh units in FY23, the Indian construction equipment (CE) industry has recorded a 26 per cent increase in overall sales volume for FY 2023-24, surpassing all projections and setting yet another record. Total sales of earthmoving equipment – the largest segment – increased to 93,531 units in FY24 (21 per cent higher than 77,164 units sold in FY23).

The major demand sectors in coming time are:

• Infrastructure development: India like other emerging economies and developed nations continues to invest in infrastructure projects such as roads, bridges, airports, and urban development. These projects require extensive earthmoving activities, driving demand for equipment like excavators, bulldozers, loaders, and dump trucks.
• Urbanisation and industrialisation: Rapid urbanisation and industrial growth worldwide necessitate significant construction activities. This includes the development of residential complexes, commercial buildings, industrial parks, and logistics hubs, all of which rely heavily on earthmoving equipment for ground preparation and construction.
• Mining sector expansion: The mining industry’s expansion, particularly in regions rich in minerals and natural resources, contributes to the demand for specialised earthmoving equipment tailored for mining operations. Equipment such as excavators, haul trucks, and loaders are essential for mining activities such as excavation, ore transportation, and material handling.
• Replacement and upgrade cycles: Many construction and mining companies periodically replace or upgrade their fleets of earthmoving equipment to improve efficiency, productivity, and safety. Advances in technology, such as automation, telematics, and fuel efficiency improvements, drive replacement cycles as companies seek to optimise operations.
• Environmental considerations: Increasing environmental regulations and sustainability goals influence equipment purchasing decisions. There is a growing demand for eco-friendly and energy-efficient earthmoving equipment that complies with emission standards and reduces environmental impact.

How has the sales pattern been for your range of earthmoving equipment?

With the equipment sales in India crossing all previous records, we too were a part of the rising curve in sales. All our equipment crossed all previous benchmarks; especially in excavators we witnessed a growth of more than 100 per cent over previous years. In wheel loaders, which is our forte the growth has been more that the industry growth. Our motor graders also witnessed a growth which was more than the industry growth.

What are the emerging technological advancements shaping earthmoving equipment?

Technological advancements have been transformative in the market, with automation, telematics, and IoT (Internet of Things) technologies making their way into construction machinery. These technologies enhance operational efficiency, provide predictive maintenance, and improve safety on construction sites. GPS-enabled machines and remote-controlled equipment have streamlined construction processes, reduced operational costs and improved overall project outcomes.

Last but not the least is introduction of electric machines in Indian environment which requires a lot of research into the customer’s operations and providing an eco-friendly solution.

Could you highlight any new features in your earthmoving equipment that prioritise reduced total cost of ownership and enhanced operational efficiency?

• Operation costs: We as manufacturers are incorporating advanced engine technologies and fuel management systems to improve fuel efficiency. This not only reduces operating costs but also lowers emissions, aligning with environmental regulations. We have introduced electric machines which actually do not consume fuel but run on batteries reducing the cost of operation and reduced carbon footprint.
• Telematics and GPS tracking: We have integrated telematics systems enable real-time monitoring of equipment performance, location tracking, fuel consumption data, and maintenance scheduling. This data helps optimise equipment usage, predict maintenance needs, and minimise downtime.
• Extended service intervals: Our equipment are now with longer service intervals for oil changes, filter replacements, and overall maintenance reducing downtime and maintenance costs. This is achieved through better-engineered. 
• Durable components: We use high-quality materials and advanced manufacturing techniques in critical components such as tracks, buckets, and undercarriages to ensure longer lifespan and reduced replacement frequency, contributing to lower total cost of ownership.
• Remote monitoring and diagnostics: We have introduced remote diagnostic in our excavators allowing equipment managers and technicians to diagnose issues remotely, troubleshoot problems and proactively address maintenance needs before they escalate.
• Adaptability and versatility: Our equipment are designed for versatility and adaptability across different job sites and applications increases utilisation rates and overall efficiency. Especially our long reach variant of excavators has been a runaway success in adapting to different operations on the same machine.

These features collectively contribute to reducing the total cost of ownership (TCO) by lowering operating costs, enhancing productivity, extending equipment lifespan, and minimising downtime. LiuGong continually innovates to incorporate these advancements into their earthmoving equipment offerings, aiming to meet the evolving needs and challenges of the construction and mining industries.

How would you describe the current landscape of the rental market for earthmoving equipment?

The Indian construction equipment rental market is witnessing significant growth, driven by massive infrastructure development, urbanisation, and various government initiatives; the market is projected to grow at a CAGR of 10 to 15 per cent over the next five years. Key drivers include government projects such as the Smart Cities Mission, Bharat Mala Pariyojana, and industrial corridor developments, various elevated projects which are increasing the demand for construction equipment. 

Quite a few major contractors have started opting for renting the equipment rather than owning. This gives them the advantage of not looking into the operation and maintenance of the equipment. This has propagated a new class of hirers who are willing to hire out their machines for short term and long-term duration.

What initiatives are currently underway to foster skill development in the operation and maintenance of earthmoving equipment?

Training and skilling initiatives are pivotal in shaping the future of the construction equipment sector. With a skilled and competent workforce, the construction equipment sector can meet the demands of a rapidly changing world and contribute to the development of sustainable infrastructure, ensuring a brighter future for generations to come.

We at Liugong organise operator training on regular basis wherein an operator is educated on various machine components and trained on site. In addition to train the operator we also have regular skill development training sessions for our own service and sales personnel. This helps is continuously upgrading the level of field operations.

What are the primary maintenance protocols typically adhered to for earthmoving equipment?

Adhering to the maintenance protocols not only ensures the reliability and longevity of earthmoving equipment but also enhances operational efficiency, reduces downtime, and promotes safety on job sites. 

• Regular inspections: Scheduled inspections before and after each use, as well as at regular intervals, are essential. 
• Fluid checks and changes: Regular checks and changes of engine oil, hydraulic fluid, coolant, and other fluids as per manufacturer recommendations ensure proper lubrication and cooling of components.
• Filter replacement: Timely replacement of air, fuel, hydraulic, and cabin filters according to maintenance schedules helps maintain clean fluids and air intake, preventing contaminants from damaging critical components.
• Greasing and lubrication: Proper greasing of all grease points ensures smooth operation and reduces wear on moving parts such as joints, bearings, and pins. 
• Undercarriage maintenance: For tracked equipment, monitoring and maintaining the undercarriage components (track tension, rollers, idlers, and sprockets) is essential to prevent premature wear and ensure proper track alignment.
• Electrical system checks: Inspecting and testing electrical components, batteries, wiring, and connections to ensure they are clean, secure, and functioning properly.
• Tire and track maintenance: Checking tire pressures, tread wear, and track tension regularly. Replacing worn-out tires or tracks promptly to maintain traction and stability.
• Safety equipment inspection: Ensuring all safety features and devices are functional and meet regulatory requirements.
• Training and operator awareness: Providing training to operators on proper equipment operation and maintenance practices, including recognising signs of wear or malfunction.

From your perspective, what does the future hold for earthmoving equipment?

It has been estimated that India is set to be the third largest construction market in 2024. India’s CE industry is likely to witness over $4.5 billion worth of investments in the next six to seven years, as demand arising out of infrastructure projects touches a new high.

The future of earthmoving equipment is likely to be shaped by several key trends and advancements:

• Technological integration: Continued integration of advanced technologies such as artificial intelligence (AI), machine learning, Internet of Things (IoT), and telematics will enhance equipment performance, productivity, and efficiency. This includes autonomous operation, predictive maintenance, and real-time data analytics for optimised fleet management.
• Electrification and alternative fuels: There is a growing emphasis on reducing carbon emissions and improving energy efficiency. Electric and hybrid earthmoving equipment is expected to gain traction.
• Enhanced safety features: Innovations in safety technologies will continue to prioritise operator and site safety. This includes improved visibility systems, and advanced control systems to prevent accidents and injuries.
• Sustainability and environmental impact: Equipment manufacturers will increasingly focus on reducing the environmental footprint of their products. This includes designing equipment with lower emissions, improved fuel efficiency.
• Remote operations and connectivity: Remote monitoring, control, and diagnostics will become more prevalent, allowing operators and managers to oversee equipment performance and maintenance needs from off-site locations.
• Data-driven decision making: The use of big data analytics and AI will enable equipment owners and operators to make data-driven decisions for better fleet management, operational planning, and resource allocation.
• Skills and training: There will be an increased focus on training operators and technicians to effectively utilise and maintain advanced equipment technologies. This ensures optimal performance and maximises return on investment for equipment owners.
• Regulatory landscape: In India ongoing and evolving regulatory frameworks will shape the design and deployment of earthmoving equipment, particularly concerning emissions standards, safety regulations, and environmental sustainability.