India’s construction equipment 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. In the fourth quarter, the sales in the fourth quarter of FY23 increased by 23 py-o-y and by 22 per cent quarter-on-quarter over Q3FY23. On a month-on-month basis, sales in March 2023 increased by 17 per cent over February 2023, said a latest report by industry apex body Indian Construction Equipment Manufacturers’ Association (ICEMA).
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. It is estimated that road and highway construction was about 30 km/day during FY23, which created demand for machines like excavators, motor graders, crushers and screeners, etc.
“FY23 saw volumes peak to the best-ever performance, with the industry sales volume exceeding the pre-pandemic level by 10 per cent,” said V G Sakthikumar, Convener, ICEMA industry analysis and insights panel and MD Schwing Stetter India.