Construction equipment sales fall 2% in FY26 amid infra slowdown

Chennai: India's construction equipment industry reported a marginal decline in volumes in FY26 as slower infrastructure execution and delays in project awards weighed on domestic demand, though a sharp rise in exports partly cushioned the impact. Total equipment sales fell about 2% year-on-year to 1,36,995 units in FY26 from 1,40,191 units a year earlier. Domestic demand, excluding non-OEM exports, declined around 7% across most equipment categories, according to the Indian Construction Equipment Manufacturers' Association. Exports, however, surged nearly 32% to 17,394 units from 13,230 units, driven by growing global acceptance of Indian-made equipment, improved quality standards, and alignment with global emission norms following the rollout of CEV Stage V regulations. Earthmoving equipment continued to dominate volumes with a 71% share, though sales dipped 2% to 97,236 units. Material handling equipment recorded a sharper 10% decline to 15,290 units, while concrete equipment remained largely flat at 14,486 units. Road construction equipment emerged as a bright spot, posting a 6.3% increase to 7,445 units, while material processing equipment grew 1.2% to 2,538 units. Imports rose 17% during the year, mainly in the earthmoving, material handling and concrete equipment segments. More than 95% of the equipment sold in India continued to be manufactured locally. "The marginal decline witnessed in FY26 must be viewed in the context of slower infrastructure execution on the ground rather than any structural weakness in the industry," said Deepak Shetty, president, ICEMA. ICEMA said the industry remains optimistic about long-term growth, backed by the govt's continued focus on infrastructure and manufacturing. The sector, currently estimated at about $10 billion, is projected to grow to $14.76 billion by 2030 at a CAGR of 8.3%.
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