We have developed a two-pronged product strategy to address the value and the premium segments.

BKR Prasad, General Manager – Marketing, Tata Hitachi

What is the current market scenario of hydraulic excavators in India?

The excavator market in India has experienced steady growth since the elections in FY 2019-20, despite of the challenges posed by the pandemic. Over the period between FY20 and FY23, it demonstrated a compound annual growth rate of approximately 9%, reaching nearly 25,500 units in FY23.

This growth trajectory has largely been fuelled by the government's emphasis on infrastructure investment as a key driver of economic expansion. Given these factors, industry projections suggest that the market is poised to achieve double-digit growth this year, potentially reaching an all-time high of approximately 27,000 units.

How do you look at the demand trend? Which segments are driving demand? What are the customer preferences for excavators?

In the excavator market, the 20-tonne segment holds a significant share, constituting over 60% of the market. These excavators are extensively utilized in major construction and infrastructure projects such as highway construction, stone quarrying, real estate development, railways, and irrigation projects. This segment experiences demand from various customer groups, including first-time buyers and small hirers who prioritize value for money and durability, seeking machines with low operating costs. On the other hand, premium machines with advanced features are preferred by large contractors, fleet owners, and construction companies focusing on productivity enhancement through telematics for performance monitoring. This segment is witnessing rapid growth due to increasing popularity among both hirers and contractors.

The 10-tonne and 7-tonne class excavators cater to smaller-scale projects such as PMGSY, brick kilns, road construction, real estate development, minor irrigation works, and small stone quarries.

Mini excavators, falling under the 7-tonne class, are experiencing significant growth with diverse applications across real estate, industrial utility, agriculture, plantations, and maintenance works. The modernization initiatives under the Swachh Bharat mission and Jal Jeevan Mission have spurred the procurement of mini excavators by local bodies and panchayats.

Moreover, larger excavators exceeding 45 tonnes are primarily deployed in mining operations and have shown consistent growth, driven by the increasing focus on coal, cement, and iron ore production to support the growing economy.

Customer requirements keep evolving continuously. Earlier, it was a reliable product that works trouble-free with minimum breakdown and parts readily available as and when required.

But over the period, customers have started making well-informed decisions with intense competition in the background. This is triggering a lot of demand from the customer for improvements in the product in terms of increased productivity, profitability and enabled with the latest digital technology along with low cost of operation and maintenance.

Additionally, operator comfort is becoming increasingly critical, particularly due to the extended durations of operation involved. As a result, factors such as ergonomics, comfort features, and air-conditioned cabins hold significant importance for our customers.

How are you making a difference in the excavator market with your products and services?

Our comprehensive range of excavators include 2 tonne to 40 tonne hydraulic excavators for the infrastructure sector, 45 tonne to 120 tonne for the mining sector and the ultra large 190 tonne to 800 tonne excavators for specialized heavy-duty mining. The ultra large mining excavators are sourced from Hitachi Construction Machinery, Japan and have both options of being diesel-driven and electric-driven, depending on the requirements of customers. These products, amongst others, are a part of our latest innovative and dependable PRIME series and the technologically advanced ZAXIS series.

We understand that today, our customers realize that they need to be extremely competitive in the marketplace – and to be competitive, they need to reduce operating costs and improve efficiencies.

Keeping this in mind, we have developed a two-pronged product strategy – one addressing the value segment and the other the premium segment.

For the value segment: The PRIME Series excavators – combining advanced technology and low running costs - to enable a high return on investment. The superior design of products in this series ensures ease in serviceability leading to a lesser downtime for maintenance. This series comes with our telematics solution - InSite - that gives detailed data on the performance of the equipment at job sites. These hydraulic excavators work in a wide variety of applications in various geographies across India commanding best-in-class resale value.

Further, we have introduced a large variety of variants and customised machines like long arm for salt application, super long front, a variety of attachments including rock breakers, Vibro ripper, clamshell, orange peel grab, auger, mulcher, hedge trimmer, magnet etc.

For the premium segment: Our offering is the ULTRA series of machines – fitted with industry leading hydraulic technology to ensure unbeatable performance, high fuel efficiency and high durability. These excavators provide impressive fuel economy, swift front movements and is easy to operate with industry leading cabin for operator comfort. Another highlight of this series is the optimized hydraulic system and the improved engine which showcases Hitachi’s technological prowess and expertise. Powered by ConSite: a next-generation service solution that utilizes Information Communication Technology (ICT), to deliver monthly reports to customers.

One of our important strength – apart from our products - is our large and expansive support network from our wide networks of dealers across the country. This has been achieved through our network of 50+ dealers and 270+ touchpoints bringing us ever closer to our customers.

The wide range of our excavators meeting the requirement of an array of customers across the application spectrum makes us unique in this market that has made and sustained us as market leaders in excavators for more than two decades.

What is your outlook on India’s excavator market? What are your future plans?

With the country aspiring to cross the USD 5 trillion mark in the next few years, investment in infrastructure will play a very crucial role in the journey. The GDP is expected to grow at an average rate of 6.5% per year from 2023 until 2028, as per the IMF.

The current National Infrastructure Pipeline (NIP) targets an investment of 111 lakh crores (USD 1.5 trillion) in the period from April 24-25. Currently, the NIP already has a project pipeline of nearly USD 1.9 trillion, and hence, the implementation timeline of the NIP is expected to go beyond 24-25.

The government has just announced an 11-lakh crore cap in the Interim Budget for 2024. Further, they have also outlined that they will present a roadmap for infrastructure over the next five years in the full-year budget expected in July.

All this means sustained investment in infrastructure over the next seven years and beyond.

Given the above, we could expect some consolidation in the market in an election year and a recovery to sustained growth thereafter.

Our expansion plans and objectives remain steadfast, to provide the most cost-effective, high-performance, and dependable products and solutions, aligned with the ethos of self-reliance, while continuously striving to meet the emerging requirements of our customers. To support our plans, below are a few points:

Expansion of mini excavators: The decision to expand our line of mini excavators indicates a recognition of market demand for smaller, more agile machinery. Mini excavators are often favoured for their versatility and ability to manoeuvre in tight spaces, making them indispensable in urban construction projects and other diverse applications across real estate, industrial utility, agriculture, plantations, and maintenance works.

Prototype of electric excavator: The unveiling of a prototype for an electric excavator (E-Electric) during EXCON 2023, showcases Tata Hitachi's commitment to sustainability and technological advancement. Electric construction equipment offers various benefits, including reduced emissions, lower operating costs, and quieter operation, aligning with global trends towards greener construction practices.

Expansion of infra range: The expansion of our infrastructure range by launch of new EX 200LC Prime, EX 210LC Prime and ZAXIS 220LC ULTRA adds to the broadening of our product offerings to cater to diverse needs within the construction sector. This expansion caters to the evolving needs of our customer and industry trends.

Customized application-specific machine: The EX235 LC-VR, unveiled recently, aligns with the Government of India's vehicle scrap page policy. This unique machine, equipped with specialized attachments, dismantles end-of-life vehicles efficiently. It's a remarkable innovation, minimizing human intervention and efficiently recycling vehicle components for reuse, contributing to a more sustainable approach in dealing with end-of-life vehicles.

Overall, our future plans indicate a strategic emphasis on innovation, sustainability, market expansion, and customer-centric reliable solutions.