Construction Equipment Sales: Delivering on Forecasted Demand Growth
ongoing & upcoming big ticket infra projects and the elections in 2024? How is your company gearing up to meet the forecasted demand?
Given the momentum of infrastructure development in the country, plus the number and scale of government-announced projects in the pipeline, construction equipment manufacturers in India can definitely be bullish about near-term future demand and their sales graph.
Crystal gazing into 2023-24 for domestic demand for construction equipment needs to be viewed in the context of how the market has grown over the last decade. Construction equipment sales witnessed double digit growth in 2016-2018, reaching record 98,286 units in 2018. Although there was a drop over the next couple of years, the market bounced back in 2021, clocking 12% growth.
The buoyancy of the construction equipment sector is largely due to several big ticket infrastructure projects announced by the Government of India, particularly the National Infrastructure Pipeline (NIP), the GatiShakti National Master Plan for multi-modal connectivity and expansion of 25,000 kms of National Highway Network.
While construction machinery sales for 2022 will remain in-line with that of the previous year, 2023 will likely witness a projected surge in demand. Going by market forecasts, the construction equipment market should grow by about 9% in 2023. But with the general elections scheduled the following year, construction equipment manufacturers could experience a slight fall in demand in 2024. The market is however expected to bounce back in 2025-26.
At Mahindra Construction Equipment, our sales projections for 2023-24 are also quite robust, and we are well on course to grow our business manifold. We have already undertaken significant steps to meet the forecasted rise in demand, particularly in the high demand product category of backhoe loader – which is also the largest selling type of construction equipment.
Mahindra has launched its all-new, made-for-India, CEV IV construction equipment product line of backhoe loaders and graders in the market. These construction vehicles, including the new-age series of our popular Mahindra EarthMaster backhoe loader, have been manufactured at Mahindra’s state-of-the-art Chakan facility. The latest-gen Mahindra EarthMaster backhoe loader is a hard-to-beat combination of robust build quality, superior performance and advanced iMAXX Telematics technology.
Mahindra EarthMaster is inside-out built for Indian conditions and usage, to meet the specific requirements of the Indian construction industry. Take for instance, the Mahindra EarthMaster SX Smart 50. This is a loader that delivers best-in-class fuel efficiency, has a large radiator to resist overheating in peak Indian summers, a bigger bucket for higher productivity and improved hydraulics that reduce per hour maintenance cost while offering enhanced performance.
Mahindra iMAXX Telematics technology comes in-built with our latest Mahindra EarthMaster and RoadMaster models. It offers several top-of-the-line features and benefits such as Vehicle Health Monitoring, Location Tracking and Geo Fencing and Time Fencing Alerts. These provide crucial real-time vehicle information, as well as allow finger-tip access and control to the customer for monitoring and interfacing with the vehicle.
All in all, Mahindra is already manufacturing world-class tech-advanced construction machines, which are ready to cater to the market demands for the next five years and more.
All in all, Mahindra is already manufacturing world-class tech-advanced construction machines, which are ready to cater to the market demands for the next five years and more.
