Construction equipment export witnesses 60% growth in FY22

According to the Indian Construction Equipment Manufacturers Association (ICEMA), the export of construction equipment has increased by 60% in FY22, with earth-moving equipment witnessing 69% growth in the last fiscal year. President of ICEMA and Managing Director of Volvo CE India, Dimitrov Krishnan, said that with the new CEV-IV emission standards, there are significant opportunities for Indian CE manufacturers. Its total exports stood at 7,802 units in FY22 from 4,862 units in FY21. However, in the domestic market, its sales dropped, resulting in year-on-year volume degrowth of 8% in FY22. The earth-moving equipment sector witnessed a 14% drop, and road construction equipment had witnessed a 10% drop. Overall, 85,385 construction equipment units were sold in FY22, compared to 92,470 units in FY21. Its domestic sales stood at 77,583 units, down from 87,608 units the previous year. According to the report, the material handling, concrete and material processing equipment sector witnessed a positive growth record in FY22. The sales in the CE industry during the fourth quarter (Q4) of FY22 were lower by 24%, compared to the same quarter the previous year. CE sales increased quarterly, with Q4 sales higher by 19% over the third quarter (Q3) in FY22. Industry analyst in ICEMA and Managing Director of Schwing Stetter India, V G Sakthikumar, said that in the first three-quarters of FY22, sales volumes remained flat, with only about 2.5% growth, as compared to FY21. He added that road construction witnessed slow progress, lower budget allocation for airport development, and inadequate utilisation of funds for real estate and infrastructure, resulting in lower equipment sales. High-speed metro trains and metro rail construction gained momentum for material handling, concreting and material processing segments. Image Source Also read: Voltas to support Jacon Equipment's product line in India