Construction equipment export witnesses 60% growth in FY22

According to the Indian Construction Equipment Manufacturers Association (ICEMA), construction equipment exports increased 60% in FY22, with construction equipment growing 69% in the past fiscal year.

President of ICEMA and Managing Director of Volvo CE India, Dimitrov Krishnan, said the new CEV-IV emissions standards open up significant opportunities for Indian CE manufacturers. Total exports were 7,802 units in FY22, up from 4,862 units in FY21.

However, in the domestic market, sales declined, resulting in an 8% year-over-year volume decline in FY22. The earthmoving equipment sector had witnessed a 14% decline and the road construction equipment had witnessed a 10% decline.

A total of 85,385 construction equipment was sold in FY22, compared to 92,470 units in FY21. Domestic sales were 77,583 units, compared to 87,608 units the previous year.

According to the report, the materials handling, concrete and material handling equipment industry experienced a positive growth record in FY22.

CE industry sales in the fourth quarter (Q4) of FY22 were 24% lower than the same quarter of the previous year. CE sales grew quarterly, with fourth quarter sales up 19% compared to the third quarter (Q3) in FY22.

Industry analyst at ICEMA and general manager of Schwing Stetter India, V G Sakthikumar, said sales volumes were flat in the first three quarters of FY22, growing only about 2.5% compared to FY21.

He added that road construction witnessed slow progress, lower budget allocation for airport development and insufficient use of real estate and infrastructure resources, resulting in lower equipment sales. High-speed metro trains and metro rail construction received a boost for the material handling, concreting and material processing segments.