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Time of India
08-08-2025
- Business
- Time of India
JCB India sees better H2, braces itself for US tariff challenge
New Delhi: Construction equipment (CE) major JCB India expects flat growth for the industry in the first half of this fiscal thanks to a broader market slowdown coupled with the impact of new regulatory norms. 'We expect H2 to be better. A better monsoon should help the rural economy come back strongly. Overall, I see that it will either be flat or show a slight improvement over last year,' Deepak Shetty , CEO & MD, JCB India, told ETAuto. He projects a growth of about 3 per cent, in line with FY2024-25 levels. Shetty was speaking on the sidelines of the annual session of the Indian Construction Equipment Manufacturers' Association (ICEMA), where he formally assumed the role of President for the 2025–27 term. He takes over from V Vivekanand, MD of Caterpillar India, who led the association from 2023-25. The Indian CE industry's total sales rose to just about 1.40 lakh units in FY25 from 1.35 lakh units in FY24, owing to delayed infrastructure projects following elections. From January this year, India implemented Euro-V emission norms for the sector, triggering a price increase. So far, JCB has sold around 20,000 units compliant with the new standards. Meanwhile, the company remains bullish on the long-term prospects of the industry, expecting India (now in third place) to overtake China and claim the number two global spot, behind the US, by the end of this decade. Shetty expects JCB to grow in line with the industry. For FY 2025-26, capex is projected at around ₹200 crore. US tariff impact The Ballabgarh-based firm exports to 135 countries translating to around 25 per cent of its total machine production last year. The US remains one of JCB's largest export markets, with nearly 10,000 machines shipped from India last year. With the ongoing geopolitical uncertainties, the company expects this share to remain flat in FY26. 'The ever-changing geopolitical situation is certainly a challenge, but at the same time, the opportunity lies in the Indian market,' he said. On the recent tariff hike, Shetty noted, 'Certainly, in the short term, there is an impact. A 50 per cent tariff is going to make it costly. But we need to see exactly at the HSN code level how it impacts, because sometimes these are at a gross level.' Additionally, the company is eyeing higher sales in Nepal, South Asia, Africa and Sri Lanka. Hydrogen over electric Shetty called hydrogen a 'huge opportunity' for the CE sector, particularly for larger machines. 'The torque requirement for big equipment makes electricity less practical. By the next decade, smaller machines, which today account for about 20-25 per cent of the market in India, will go electric since they operate mainly in urban areas. But larger, high-torque machines will go for hydrogen.' Citing the example of Leh-Ladakh, he said while diesel must be transported via tankers, hydrogen can be produced locally using an electrolyser, an approach already implemented by NTPC. Shetty said JCB is ready with the technology for alternative powertrains but highlighted the lack of ecosystem as the biggest barrier. At Excon 2025, the company will unveil new products in electric and hydrogen segments, while steering clear of CNG due to the narrowing price gap with diesel. China challenge China's product dumping remains a major challenge for India's CE industry, highlighted Shetty. On Thursday, Road Transport and Highway Minister Nitin Gadkari said the Centre was working on a new Bill aimed at supporting the industry and reducing imports, particularly from China. The goal was to enhance the sector's competitiveness through targeted policy measures. The CE industry has also been pressing the Centre to introduce the Construction, Earthmoving, Material Handling Machinery Act, which will set standards for both emissions and operator safety. The legislation is currently in the draft stage. On technology advancements, Shetty said while these were more prevalent in developed countries like the US for certain mining applications, JCB has also worked on certain autonomous driving applications in collaboration with the Defence Research and Development Organisation (DRDO). 'I can't talk much about it, but there are some autonomous technologies that we have developed with DRDO,' he said.
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Business Standard
07-08-2025
- Business
- Business Standard
Short-term pain has to be borne for long-term gains: JCB India MD
Short-term pain has to be endured to secure long-term advantages, and the construction equipment industry is prepared for it, said Deepak Shetty, chief executive officer and managing director of JCB India, on Thursday, referring to the 50 per cent tariff imposed by US President Donald Trump. Construction equipment manufacturer JCB exported 14,000 units in 2024, of which 10,000 went to the US. Shetty is set to take charge as president of the Indian Construction Equipment Manufacturers' Association (iCEMA) on Friday. The Indian construction equipment industry is valued at around $6 billion. When asked if he was concerned about the US government's move, Shetty said, 'Yes.' 'The past four years have been great for JCB's exports across the world. Before that, JCB used to export just about 2,000 machines. If we look at the past five years, our exports have increased multiple times. We export to 135 countries,' he told Business Standard. On tariffs and trade issues with the US, he said: 'We are very open as an industry. We wanted to free our government's hands, so we told the commerce ministry that there should be zero duties on construction equipment imported on both sides, so that there is a level playing field. We are very confident about the quality of our machines.' While acknowledging the near-term impact of the US government's move, Shetty backed the Indian government's broader trade approach. 'I only wish the government well, because they are protecting the interests of the nation. In the short term, a few of us will have to go through pain, but it's worth it if you look at the long-term vision for the country. I would only say — more power to the government,' he observed. On the potential impact of tariffs, Shetty remained optimistic. 'The customers there have enjoyed using our machines. They have seen the productivity and the quality of our products. So, I am sure that once things settle down, our exports will continue in large numbers. I am very confident,' he said. He also pointed to other potential markets — Eastern Africa, Nepal, Sri Lanka, Malaysia, Thailand and Indonesia — which the company is eyeing for export diversification. Looking ahead, he said, 'We expect exports in 2025 to remain flat. We have a positive in the free trade agreement that has been signed with the UK. On the other side, we have a tariff situation with the US. I think it will get settled in one or two months.' On the domestic front, JCB sold 35,000 units in 2022, 44,500 in 2023, and 50,250 in 2024. But Shetty expects a pause in growth this year. 'Domestic sales are expected to remain flat in 2025 due to the implementation of new Bharat Stage (BS)-V emission norms from January 1, which led to a price increase, funding constraints at the state government level, and ongoing challenges faced by some non-banking financial companies,' he said. 'Some of our competitors stocked products that were produced before December 31. However, we were confident about our new products (made keeping in mind the BS-V norms), as their fuel efficiency is better by 14.5 per cent and they have lower maintenance costs. So, they were launched in the market from the first week of January itself,' he said.
Time of India
07-08-2025
- Business
- Time of India
JCB India revises growth target for FY26 amid industry challenges
NEW DELHI: JCB India has revised its growth forecast for the financial year 2025-26 from an earlier estimate of 8-9% down to a more modest 2-3%, citing a combination of market slowdown and regulatory impacts. Deepak Shetty , chief executive officer and managing director of the company, on the sidelines of ICEMA Annual Session 2025 held in New Delhi, said that the first half of the financial year has been challenging due to a slowdown in infrastructure development and the introduction of new stage 5 emission norms in January, which created market uncertainty and impacted sales. While the company initially anticipated robust growth, the current landscape—with subdued domestic infrastructure activity and geopolitical tensions affecting exports—has necessitated a more cautious outlook. Exports, a key revenue driver especially to the United States, are expected to remain flat in the near term due to tariff uncertainties and global challenges. Shetty expressed optimism, however, that the situation will improve in the second half of the year, starting mid-August, bolstered by an above-normal monsoon and a strengthening rural economy. He also highlighted positive trends in neighboring markets such as Nepal, Sri Lanka, and parts of Africa, although pricing pressures remain a challenge in these regions. Despite the downward revision in growth projections, JCB India plans to continue its long-term investment strategy with planned capital expenditures around ₹200-250 crore for the year. The company's manufacturing capacity utilization remains steady at approximately 85%, supported by adjustments in its product mix. Looking ahead, Shetty, however, remains confident about the medium-term prospects of the construction equipment industry , anticipating a recovery driven by government infrastructure initiatives and a projected 6.5% economic growth. He also mentioned ongoing efforts toward the adoption of electric and hydrogen-powered machinery, though widespread deployment is expected to take more time. In response to inflationary pressures and cost challenges linked to new regulations and input material tariffs, the company is focused on cost optimization but acknowledged possible short-term price increases if circumstances demand. In July 2025, it introduced a new loader model targeting the agricultural equipment segment. The machine offers a clutchless operation and supports multiple attachments, aimed at serving users who have traditionally relied on modified tractor-loader setups. The product is being manufactured domestically at its Ballabhgarh manufacturing facility and addresses a segment with an estimated annual demand of around 15,000 units in the rural economy.
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Business Standard
07-08-2025
- Business
- Business Standard
Short-term pain worth it for long-term gain: JCB India chief on US tariff
JCB India CEO Deepak Shetty says the US tariff will hurt in the short run but backs the Indian government's trade vision and expects demand to recover soon Deepak Patel New Delhi Listen to This Article Short-term pain has to be borne to gain a long-term advantage, and the construction equipment industry is prepared for it, said Deepak Shetty, chief executive officer and managing director, JCB India, on Thursday, on the issue of the 50 per cent tariff imposed by United States President Donald Trump. JCB exported 14,000 units in 2024—of which 10,000 went to the US. Shetty is taking charge as president of the Indian Construction Equipment Manufacturers' Association (ICEMA) on Friday. The size of the Indian construction equipment industry is around $6 billion. When asked if he was worried about the US
Time of India
24-07-2025
- Business
- Time of India
Indian construction equipment sales dip 1% in Q1 FY26; exports surge 34%
NEW DELHI: The Indian construction equipment (CE) industry witnessed a muted start to FY26, posting a marginal 1% year-on-year decline in total sales with 28,687 units sold in the April–June 2025 period. This compares to 28,902 units sold in Q1 FY25. The latest quarterly data, compiled by the Indian Construction Equipment Manufacturers' Association ( ICEMA ), reveals a broad-based slowdown across major equipment categories, even as exports surged to provide a bright spot amid otherwise sluggish market demand. Market performance and segment insights Domestic sales dropped nearly 5% year-on-year with 24,809 units sold versus 26,020 units in the same quarter last year. In contrast, exports rose robustly by 34.5% year-on-year, climbing from 2,882 units in Q1 FY25 to 3,878 units in Q1 FY26, driven by strong overseas demand for Indian-made equipment. Segment-wise, the numbers reflect the ongoing volatility in infrastructure project execution: SegmentQ1 FY26 unitsYoY changeEarthmoving Equipment17,021-3.8%Concrete Equipment3,477+15%Material Handling Equipment2,673-24.5%Road Construction Equipment1,072-11.8%Material Processing Equip.566+4.6% 'This slowdown gives us a chance to reassess the pace of infrastructure rollout, especially at the state level. Delays in project implementation continue to weigh on demand,' said Deepak Shetty, president designate, ICEMA and CEO & MD, JCB India. Factors impacting demand Industry stakeholders attribute the slowdown primarily to subdued activity in critical end-use segments, particularly roads, highways, and mining. Regional disparities further impacted demand, with some states recording a pickup in infrastructure while others lagged behind. Sector leaders flagged execution delays in government projects and the seasonal nature of construction activity as key contributors to the softer quarter. V. Vivekanand , president, ICEMA, commented that the start of FY26 reflects a declining phase for the industry after a high-growth Q4, with muted demand in key sectors being a concern. He stressed the importance of expediting planned infrastructure projects to revive momentum in the coming quarters. Industry outlook While the current slowdown is seen as partly seasonal, the sector remains cautiously optimistic, citing innovation, localisation, and sustainability as ongoing focus areas. Citing credible data from OEMs that represent 95% of India's CE industry, ICEMA analysts warned that unless infrastructure execution picks up, demand could remain challenging in Q2 FY26. Industry leaders urged the government to closely monitor and accelerate the rollout of major projects as a means to sustain investments and deliver on ambitious national infrastructure goals.
