We are focused on several strategic initiatives to meet future customer demand.
Joydeep Baksi
National Sales Head (Sales & Marketing), HD Hyundai Construction Equipment India
What is the USP of the equipment & machinery offered by the company to the Indian market?
HD Hyundai has established a reputation for reliability and robust comfort in today's competitive construction equipment market. This dedication has resulted in over 50,000 HCE units being operational in India since 2008, a testament to the trust and recognition we have earned.
The focus on quality and adapting advancements in our equipment has also secured us the second-largest domestic market share and the leading position in exports and one step closer to contributing to a smarter India. Renowned for its high performance and cutting-edge technology, exemplified by the Hi MATE telematics system. This system enhances remote management, security, and operational efficiency. By integrating such advanced technology, our machines ensure optimal productivity and maintain high resale value due to their cost-effective maintenance.
HD Hyundai features a widespread network of 38 dealers and over 200 service touchpoints across India, ensuring timely customer support and maintenance. Establishing a new standard in customer service for the construction equipment industry, we focus on reducing maintenance costs and enhancing operator comfort. Our cabins feature low noise and vibration levels, improving working conditions for operators.
What is the market share of the company over the past 3 years?
Over the past three years, the company has consistently expanded its market share, reflecting a robust competitive edge and strategic execution. Starting at 14.8% in 2022, the market share increased to 17.1% in 2023—a substantial improvement indicative of successful market penetration and the company’s ability to capitalize on emerging opportunities. In 2024, despite a marginal decline of 17%, the overall trend remains positive, with a net gain of 3% from 2022. This sustained growth highlights the company’s resilience and strategic positioning, maintaining its market leadership even amidst slight year-on-year fluctuations.
What are the various challenges of your sector and how do you tackle them?
Every challenge is seen as an opportunity for exceptional service and excellence that drives us to constantly deliver high-quality, reliable, and technologically advanced equipment that meets the evolving demands of our customers. At Hyundai, we tackle the challenges with a series of initiatives.
Rising raw material cost: To mitigate the impact of rising raw material costs and global price fluctuations, we leverage the 'Make in India' initiative. By encouraging and developing a robust network of local vendors and suppliers, we contribute significantly to the strength of the local economy.
We prioritize long-term contracts with suppliers to stabilize material costs and negotiate favourable pricing terms, reducing dependency on volatile market conditions and ensuring continuity in our supply chain. Furthermore, we constantly search for value engineering opportunities to optimize material usage while maintaining our high-quality standards.
Additionally, we invest in efficiency improvements through lean manufacturing practices and advanced technologies. By enhancing operational efficiencies and minimizing waste, we aim to lower overall production costs associated with raw materials. Our proactive approach includes robust risk management strategies. We closely monitor geopolitical events, economic trends, and natural disasters to anticipate and mitigate potential disruptions in the supply chain.
Buyers facing funding: Funding is a notable obstacle for our predominantly first-time buyers. Financial institutions are often hesitant to fund first-time users (FTUs) and first-time buyers (FTBs) due to concerns about Non-Performing Assets (NPAs). To address this, we collaborate with top financiers like HD Hyundai to create tailored funding schemes. We work closely with financiers to secure approvals by lowering the funding percentage or adding a co-borrower/guarantor, making financing more accessible for our customers.
Management of old machines: India faces a challenge in managing old machines that require maintenance. There is a lack of dedicated space and agencies to handle this old stock. However, we actively introduced an in-house refurbishment center for old machines to extend their lifespan and value, providing cost-effective alternatives to purchasing new equipment. This approach optimizes resource utilization and offers affordable upgrade options for our customers.
At HD Hyundai, we thrive on overcoming challenges to drive continuous growth and enhance customer satisfaction. Whether navigating increased raw material costs or addressing financing barriers for first-time buyers, we strategically devise and implement solutions that drive success and elevate our standards in the industry.
How are you prepared to introduce more efficient and productive equipment to meet customer demand in the future?
At HD Hyundai, we are focused on several strategic initiatives to meet future customer demand. Our heavy investment in R&D drives innovation and efficiency where we integrate eco-friendly technologies, including BS V engines, to meet regulatory standards and enhance sustainability. Our customer-centric design ensures user-friendly, versatile machines that improve operational efficiency and reduce downtime. We offer comprehensive training and support services to maximize equipment performance and longevity. Advanced manufacturing techniques and strategic partnerships ensure our products meet the highest standards of quality and reliability. We are also expanding our product range to include specialized equipment, catering to diverse industry requirements. These initiatives position us to effectively meet evolving demands and maintain industry leadership.
What is the prevailing market condition for your sector and what is the forecast for the future?
Over the past 15 years, HD Hyundai has built a strong presence in India, experiencing notable growth in the infrastructure and mining sectors. Hyundai sees this expansion as an opportunity to strengthen its market position with enthusiasm and active participation. Key factors driving this growth include infrastructure development, urbanization, and the increasing demand for construction equipment driven by ongoing and planned projects. The rapid growth of urban areas requires extensive construction, which significantly impacts market dynamics.
HD Hyundai is committed to shaping India's future through its vision of "Building India’s Tomorrow" and its dedication to creating a "Comfortable Tomorrow" with advanced solutions. The company prioritizes customer-focused innovations to meet the needs of the younger generation and contribute to the country's progress. Efficiency and economic value across the equipment's lifecycle are emphasized to align with India's evolving market. Recent data indicates a substantial 25% growth in the industry during FY2023-24, with sales reaching 125,000 units compared to 100,000 units in FY2022-23. This growth is driven largely by robust domestic sales, highlighting the resilience of the Indian equipment market. Significant expansion is expected in the Indian construction equipment sector, potentially tripling in size over the next five years.
