An updated forecast from Off-Highway Research says construction equipment sales in India will grow 27% this year, with double-digit increases to follow in 2017 and 2018. This should see sales volumes beat the previous record of 72,197 units, which was achieved in 2011.
Sales have been boosted by a renewed focus on infrastructure investment. “Infrastructure development is a key economic driver and enjoys an intense government focus that should accelerate demand for construction equipment in the country. India needs an estimated investment of INR31 trillion (US$ 454 billion) over the next five years to keep pace with its growth targets, of which over 70 per cent would be needed for power, roads and urban infrastructure segments. The total budgeted outlay for the infrastructure sector for fiscal year ending March 2017 is INR2.2 trillion (US$32 billion),” said the report.
Commenting on the state of the equipment market, the report added, “The domestic market is dominated by six equipment types, backhoe loaders, crawler excavators, mobile cranes, mobile compressors, compaction equipment and wheeled loaders. These six equipment types will account for 94 per cent of the market in 2016.”
The latest market update and forecasts are available as part of Off-Highway Research’s Indian Service. Click here for more details.