Current trends indicate that the increase in the sale of machines will continue through the next year

- DEEPAK SHETTY

CEO & Managing Director, JCB India

How do you experience the current demand trend of construction equipment?

India is going to be a growth driver for the world in the coming decades, and much of this growth will come from infrastructure development in the country. There are projects of significant national importance that are gaining encouraging momentum across the country. Large-scale Infrastructure development requires larger and more productive machines.

There has been a direct correlation between infrastructure development and equipment sales in the past. This year we witnessed a slow beginning in terms of equipment sales. This was due to a few reasons: the Russia-Ukraine conflict disrupted supply chains, and a steep increase in commodity prices led to lower demand in the year's first quarter. However, with the government's increased focus on the infrastructure sector, the cooling off of commodity and fuel prices, and the resumption of supply chains, we are seeing a steady rise in sales for construction equipment.

Current trends indicate that the increase in the sale of machines will continue through the next year.

What is your outlook on the CE market in 2023?

India's infrastructure development for the next decade is lined with huge projects and government schemes. Plans to develop India's infrastructure have been given impetus through the National Infrastructure Pipeline (NIP), the National Monetisation Plan (NMP) and Gati Shakti and the National Single Window System (NSWS). Also, government programmes for the development of highways, ports infrastructure, railway network, airports and logistics infrastructure are expected to create more opportunities for construction activities.

All these mega projects will attract use of construction equipment in large numbers in the coming years. The industry estimates sales of construction equipment (domestic sales and exports) to grow 15-20% in fiscal 2023.

How are you gearing up for the year ahead?

For over four decades, JCB has remained committed to the India growth story. From introducing the backhoe loaders in India in 1979, to the global manufacturing force the company has become today, JCB India has been making the nation and its communities stronger every day. While the backhoe loader is an ideal machine to reach remote/rural areas, with new road development projects coming up in remote areas, we are also seeing an increase in the purchase of excavators and mini excavators. Large-scale infrastructure development will require larger and more productive machines, and a recently launched new range of excavators (JCB NXT 225LC M) addresses that need.

We are also observing an increase in government tenders floated to acquire construction equipment. The municipal corporations of big states like Maharashtra, Gujarat and Uttar Pradesh regularly acquire JCB machines. In rural sectors, Gram Panchayats across the country float tenders for equipment that is regularly fulfilled by JCB.

Since JCB has a high market share in the sector, the demand for JCB equipment will increase accordingly. One in every two machines is a JCB and we expect that we will continue to support the government at the same level.

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