Construction Equipment Sales in India Hit Record Low in FY25

New Delhi – Sales of construction equipment in India grew by only 3% in FY25, the slowest pace in years. Total sales reached 1,40,191 units, up from 1,35,650 units in FY24, according to new data from ICEMA, the Indian Construction Equipment Manufacturers' Association.

This small gain follows a strong 26% growth in FY24. Growth in the domestic market was even lower, at 2.7%, while exports rose by 10%, helping the industry avoid a flat year.

Project Delays and Election Pause Demand

Elections in 2024 hit the sector hard. Many government projects paused. Tenders faced delays. Big states like Maharashtra slowed down new work. As a result, demand for heavy machinery dropped.

“Approvals stalled,” said V. Vivekanand, ICEMA President and Managing Director of Caterpillar India. “New investment did not move on the ground.”

New Emission Rules Add Pressure

In January 2025, India enforced Stage V emission norms (CEV-V). These rules apply to diesel-based wheeled equipment—like backhoe loaders, telehandlers, and compactors. Adapting to the new norms slowed equipment sales in Q4 FY25. Manufacturers and buyers needed time to comply.

Tight Credit and Supply Chain Issues

Financing became harder in FY25. Banks tightened lending. Prices for inputs rose. Key parts from China and South Korea faced delays. These issues reduced equipment availability and raised costs.

“The year started with hope,” said Deepak Shetty, ICEMA President Designate and CEO of JCB India. “But elections, rising costs, and new standards hit growth.”

Segment Results Show Uneven Picture

• Earthmoving Equipment led with 99,159 units sold. It made up 71% of total sales. The segment grew by 6%.
• Backhoe Loaders sold 53,133 units (54% of segment).
• Crawler Excavators sold 35,816 units (36% share).
• Material Handling Equipment dropped by 9%, selling only 17,050 units.
• Concrete Equipment grew by 3%, reaching 14,473 units.
• Material Processing Equipment fell by 4%, selling 2,507 units.
  

Export Gains and Long-Term Outlook

Despite the slowdown, India is now the third-largest CE market in the world. Export growth is rising, especially to developed countries. In 2015, exports stood at $3 billion. In FY25, they reached $1 billion. By 2035, ICEMA sees exports growing to $5–6 billion.

ICEMA projects the domestic CE industry to grow from $10 billion in 2025 to $30–35 billion by 2035. But to reach this, India needs strong state-level investment in rural infrastructure.

Conclusion: Policy Push and Innovation Needs

“We have a chance to grow exports and local supply,” said Vivekanand. “But we need capital and scale. The next decade can be big—if we prepare.”

ICEMA wants the government to start a PLI scheme for CE makers. It also urges a bigger push toward alternate fuels. These are still rare, but fuel-efficient machines are gaining attention.

Stay tuned with 91Infra for the latest news, updates, and insights into the construction equipment industry. As the fastest-growing digital platform, we are committed to providing you with accurate information, expert reviews, and in-depth analysis of construction equipment from various brands. Whether you’re looking for price comparisons, variant details, or industry trends, 91Infra is your go-to source for everything related to construction machinery in India.