Latest news with #IndianConstructionEquipmentManufacturers'Association
Time of India
29-05-2025
- Business
- Time of India
Indian construction equipment industry achieves marginal 3% growth in FY25: Report
NEW DELHI: The Indian construction equipment (CE) industry has achieved a marginal three per cent year-on-year growth in FY25, with total equipment sales reaching 1,40,191 units compared to 1,35,650 units in FY24, according to a recent report by the Indian Construction Equipment Manufacturers' Association (ICEMA). The CE industry had seen a growth of 26 per cent year-on-year in FY24. During the current fiscal, while the domestic market growth remained subdued at 2.7%, the industry's overall performance was better due to a 10% surge observed in the exports. "2024 being an election year was one of the major reasons behind the overall drop in growth. This led to pause and delay in approvals of tenders and new investment being implemented on ground. Maharashtra election also impacted the demand for CE industry," said V. Vivekanand, president, ICEMA and managing director, Caterpillar India . Another reason is the construction equipment vehicle (CEV) stage V emission norms, which became effective on January 1, 2025. The norms are mandated by the Ministry of Road Transport and Highways (India) and apply to all wheeled construction equipment machines with diesel engines, such as backhoe loaders, telehandlers, loaders, and compactors. "Adapting to these norms also led to a slowdown in Q4 FY25," said Vivekanand. Tightning of financing environment and difficulties in sourcing of components from countries like China and South Korea have also impacted the overall industry in FY25. Deepak Shetty, president designate, ICEMA and CEO & managing director, JCB India said, "The growth could certainly have been higher as was anticipated earlier during the year, but as an industry, we continue to be hopeful of a strong future in the longer term. Elections, rising input costs and emission standards have affected the growth momentum adversely this year." Vivekanand however argues that the industry has been on a sustained double digit growth for a long period of time, and it's not fair to expect the same momentum to continue forever, while we aspire that same to continue all the time. So if you are to really look at it, we are not really looking at a dip and there is always a high baseline effect. However on the bright side, India has become the third largest CE industry in the world. The exports which have been marginal in the past are now seeing growth ICEMA claiming that most of the exports are now happening in the developed countries. In the next ten years, ICEMA however expects 3x growth in the domestic industry moving from $10 billion in 2025 to $30-35 billion by 2035, while the exports are expected to grow from the current $1 billion to $5-6 billion during the same period. It was $3billion industry in 2015. Segment-wise performance: Earthmoving Equipment segment continued to dominate with 71% market share, recording 99,159 units sold (6% growth). Backhoe Loaders led the segment with 53,133 units (54% share), followed by Crawler Excavators at 35,816 units (36% share). Material Handling Equipment segment saw a de-growth of nine per cent in FY25 with 17,050 units, while Concrete Equipment contributed 14,473 units with a 3% growth. Material Processing Equipment recorded 2,507 units and witnessed a de-growth of four per cent. CE industry's transition towards alternate fuels is still at a nascent stage and ICEMA believes the push can come from either the regulatory front or if the machines become cost-efficient. The industry is however trying to innovate and makes machines more fuel efficient. Demand from government ICEMA wants state governments to invest more in infrastructure development especially in rural areas. They are also demanding a PLI scheme for the construction equipment sector. "We do have a significant amount of opportunity, one, to build that capacity and capability for catering to the domestic need, and also actually position ourselves to a global export hub. And so we need to attract lot of investments on the component sector and also the equipment capacity," said Vivekanand.
India Gazette
28-05-2025
- Business
- India Gazette
Zero duty deal will create level playing field for trade with US: JCB India chief
New Delhi [India], May 28 (ANI): Deepak Shetty, Managing Director and CEO of JCB India and president-designate Indian Construction Equipment Manufacturers' Association (ICEMA), said on Wednesday that a zero-duty deal between India and the US will create a level playing field for businesses in both countries. Specifically, it would address some of the uncertainties created by US tariffs and facilitate exports. 'As an industry, we will be very happy with zero duty. It will create a level playing field. We are very confident of our price points, of our machines, the quality of our machines, and we believe that if there is a zero duty, we would be very happy to sell those machines in a very competitive environment, even in a market like the US,' Shetty told ANI. US tariffs on goods from India, including construction equipment, have created uncertainty and potentially made it more difficult for Indian companies to compete in the US market. A zero-duty agreement could remove these barriers. Media reports suggest that under the proposed deal, India has offered to bring duties down to zero on 60 per cent of tariff lines in the first phase of the Bilateral Trade Agreement. Talking to ANI, Shetty said he believes Indian exports to the US and other developed markets will enhance with the signings of FTAs that are currently under negotiations. 'I firmly believe that when we have a Bilateral Trade Agreement with the will be elements in the agreement which will again encourage more exports from India to the US and other developed markets,' said Deepak Shetty. In an interview with ANI, Shetty said the FTAs, including with the UK that has been agreed upon recently, creating great opportunity for the industry. Asked about Federation of Indian Export Organisations' exports projections worth USD 1 trillion in 2025-26, Shetty assured that the construction equipment will increase its contribution to the overall Indian trade. 'I can only say that our contribution to that USD 1 trillion overall number is going to increase for next year, and it will continue to increase for many years. So we will be very proud to enhance our contribution to that particular number,' he supplemented. Indian businesses are aiming exports to the tune of USD 1 trillion in the current financial year 2025-26 with merchandise exports of USD 525-535 billion and services exports of USD 465 -475 billion, FIEO said on Tuesday. India's total exports have touched an all-time high of USD 824.9 billion in the financial year 2024-25. This marks a yearly growth of 6.01 per cent over USD 778.1 billion exports in 2023-24, setting a new milestone. The 2024-25 exports exceeded the initial anticipation of USD 800 billion. (ANI)
&w=3840&q=100)
Business Standard
28-05-2025
- Business
- Business Standard
Construction equipment industry may see double-digit growth in FY26: ICEMA
The domestic construction equipment industry is likely to register double-digit growth in the ongoing financial year as the pace of project execution, which has shown some positive momentum, is expected to grow further, ICEMA said on Wednesday. Speaking with reporters here, Indian Construction Equipment Manufacturers' Association (ICEMA) President V Vivekanand said, "Our expectation this year is that we should actually get back to double-digit growth." "But overall, as an industry, I am confident that we will have double-digit growth. Double-digit means at least 10 per cent growth compared to the previous year, which would mean that our 10-billion-dollar industry is likely to be at least 11 billion dollars by next FY26," The Indian construction equipment industry achieved a 3 per cent growth in FY25, with total equipment sales reaching 1,40,191 units compared to 1,35,650 units in FY24. While domestic market growth remained subdued at 2.7 per cent, the industry's overall performance was better due to a 10 per cent surge observed in exports, reinforcing the country's position as the world's third-largest construction equipment market. "The three per cent growth in FY25 demonstrates the resilience of India's construction equipment industry, particularly in challenging domestic market conditions. While we faced headwinds during the election period that impacted domestic demand, the remarkable 10 per cent surge in exports validates the global competitiveness of Indian-manufactured equipment. "This export momentum positions our industry well as we work towards meeting the anticipated higher demand for construction equipment in the coming years," he said. Earthmoving equipment continued to dominate with 71 per cent market share, recording 99,159 units sold (6 per cent growth). Backhoe loaders sales were 53,133 units (54 per cent share), followed by crawler excavators at 35,816 units (36 per cent share). Material Handling Equipment accounted for 17,050 units, while concrete equipment contributed 14,473 units with a 3 per cent growth. Road construction equipment achieved 7,002 units, and material processing equipment recorded 2,507 units. Looking ahead, the industry expects higher demand for construction equipment driven by anticipated infrastructure investments and economic recovery. However, to capitalise on this expected growth, the sector will require necessary government support including policy interventions to stimulate domestic demand, facilitate financing access, and address supply chain challenges. The industry's strong export foundation, combined with robust domestic manufacturing capabilities, positions it well to meet future demand provided appropriate support mechanisms are implemented, it said. ICEMA is the apex body representing leading construction equipment manufacturers in India. ICEMA's members account for over 95 per cent of the construction equipment manufactured and sold in the country.
Economic Times
23-04-2025
- Business
- Economic Times
ICEMA asks govt to re-evaluate long-term implications of steel safeguard duty
iStock India on Monday imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports. NEW DELHI: Indian Construction Equipment Manufacturers' Association on Tuesday asked the government to re-evaluate long-term implications of the 12 per cent safeguard duty imposed on select steel products saying it is expected to disrupt supply chain and cost structures in the sector. Steel is the most critical raw material in construction equipment (CE) manufacturing, particularly specialised high-tensile and performance-grade steels that are currently not produced in India at sufficient volumes or specifications, Indian Construction Equipment Manufacturers' Association (ICEMA) said in a statement."As these materials are largely imported, the imposition of the safeguard duty immediately compromises manufacturers' ability to source essential inputs, threatening both production continuity and the timely delivery of equipment," it on Monday imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports. The decision followed a recommendation for the same by the Commerce Ministry's investigation arm DGTR. Last month, the DGTR suggested to impose the duty. "The CE industry urges the government to urgently re-evaluate the long-term implications of the safeguard duty and consider mitigation measures to cushion the blow to downstream industries," ICEMA said. It further said, "A well-balanced, data-driven policy that supports both domestic steelmakers and vital sectors like construction equipment manufacturing is essential to protect India's infrastructure ambitions and global competitiveness."The CE industry body said even prior to the announcement, the mere initiation of the safeguard inquiry had triggered substantial price volatility."Steel prices rose by approximately Rs 10,000 per tonne during the course of the investigation, squeezing already narrow margins. With the 12 per cent duty now officially imposed, input costs are expected to rise even further, forcing CE manufacturers to consider price hikes that will ultimately impact infrastructure project costs nationwide," ICEMA said. The decision also risks undermining India's export competitiveness in the global construction equipment market, particularly at a time when international buyers are actively seeking alternatives to China under 'China plus One' sourcing strategies, it added. ICEMA cautioned that with rising input costs and reduced flexibility, Indian CE manufacturers may lose momentum in capturing global market share, a setback to the broader goal of establishing India as a global manufacturing hub.
Time of India
23-04-2025
- Business
- Time of India
ICEMA asks govt to re-evaluate long-term implications of steel safeguard duty
India on Monday imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in imports. The Indian Construction Equipment Manufacturers' Association (ICEMA) has voiced concerns over the 12% safeguard duty on select steel products, fearing disruption to the supply chain and increased costs. ICEMA highlights the industry's reliance on imported, specialized steel and warns of potential production delays and price hikes impacting infrastructure projects. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads NEW DELHI: Indian Construction Equipment Manufacturers' Association on Tuesday asked the government to re-evaluate long-term implications of the 12 per cent safeguard duty imposed on select steel products saying it is expected to disrupt supply chain and cost structures in the sector. Steel is the most critical raw material in construction equipment (CE) manufacturing, particularly specialised high-tensile and performance-grade steels that are currently not produced in India at sufficient volumes or specifications, Indian Construction Equipment Manufacturers' Association ( ICEMA ) said in a statement."As these materials are largely imported, the imposition of the safeguard duty immediately compromises manufacturers' ability to source essential inputs, threatening both production continuity and the timely delivery of equipment," it on Monday imposed a 12 per cent provisional safeguard duty for 200 days on five steel product categories, including hot rolled coils, sheets and plates, to protect domestic players from surge in decision followed a recommendation for the same by the Commerce Ministry's investigation arm DGTR . Last month, the DGTR suggested to impose the duty."The CE industry urges the government to urgently re-evaluate the long-term implications of the safeguard duty and consider mitigation measures to cushion the blow to downstream industries," ICEMA further said, "A well-balanced, data-driven policy that supports both domestic steelmakers and vital sectors like construction equipment manufacturing is essential to protect India's infrastructure ambitions and global competitiveness."The CE industry body said even prior to the announcement, the mere initiation of the safeguard inquiry had triggered substantial price volatility."Steel prices rose by approximately Rs 10,000 per tonne during the course of the investigation, squeezing already narrow margins. With the 12 per cent duty now officially imposed, input costs are expected to rise even further, forcing CE manufacturers to consider price hikes that will ultimately impact infrastructure project costs nationwide," ICEMA decision also risks undermining India's export competitiveness in the global construction equipment market, particularly at a time when international buyers are actively seeking alternatives to China under ' China plus One ' sourcing strategies, it cautioned that with rising input costs and reduced flexibility, Indian CE manufacturers may lose momentum in capturing global market share, a setback to the broader goal of establishing India as a global manufacturing hub.
