India Poised to Overtake China in Construction Equipment Sales, Says JCB

India's construction equipment market is predicted to surpass China and become the second-largest globally by 2030, according to JCB India MD & CEO Deepak Shetty. This anticipated growth is spurred by continued government emphasis on infrastructure development and the potential implementation of supportive schemes for exporters.

Currently, the Indian construction equipment market sees annual sales of approximately 95,000 to 100,000 units. In comparison, China's and the U.S. markets have annual volumes of about 175,000 and 250,000 units, respectively. Despite current challenges that have led to a decline in volumes compared to the previous year, hopes are high that the resolution of tariff issues with the U.S. and favorable monsoons will contribute to sector growth in the coming year.

Shetty has emphasized the necessity of sustained focus on infrastructure development. He also mentioned the importance of funding state governments to enable them to invest further in rural infrastructure development. Projects related to the elections had a negative impact. Moreover, the shift to JCB CEV V emission norms in January also contributed to a slowdown in sales.

JCB India is proactively addressing challenges and pursuing global opportunities. Despite a 25% tariff imposed by the U.S. on Indian exports, including construction equipment, the company remains optimistic. Shetty believes these challenges are short-term, and JCB's global presence, with factories in India, the UK, Brazil, and the U.S., allows it to redirect machines to other markets.

The company is also relying on the UK-India Free Trade Agreement to enhance its competitiveness in Europe. Furthermore, JCB is experiencing increased sales in South Asia and Africa. Sales in Nepal are expected to rise from 250 units last year to as many as 700 in 2025, with Sri Lanka projected to see 500–600 units. In Africa, JCB has tripled sales in three years, with gains in Ethiopia, Kenya, Tanzania, Uganda, and Angola.

JCB India anticipates double-digit growth in both domestic sales and exports next year, despite an overall contraction in volumes from approximately 64,500 units last year to around 57,000 units this year. While exports are expected to reach around 11,500 units this year, down from 14,000 machines last year (which included 10,000 units to the U.S.), the company is optimistic about a rebound. Domestic sales are projected to drop from 50,000 units last year to 47,000 units this year.

Deepak Shetty also noted the significance of pushing exports from the country, leveraging Free Trade Agreements (FTAs) to tap into increasingly open global markets. JCB currently exports to over 135 countries from its Indian plants.

The construction equipment segment volume is expected to decline to around 90,000 units this year from 1 lakh units in 2024, influenced by the stalling of shipments to the U.S. due to tariff issues. Despite these challenges, the long-term outlook for the Indian construction equipment market remains positive, with expectations of rapid growth over the next five years.

According to Shetty, about 70% of the company's sales are to first-time buyers. The total sales of construction equipment in India are expected to be around 95,000-100,000 this year.

JCB India is also focusing on technological advancements and has launched its JCB India Stage V range, which promises improved fuel efficiency and lower maintenance costs. More than 20,000 Stage V units have been sold in the first six months of 2025.

Overall, while the construction equipment sector in India experienced a period of slower growth, primarily due to election-related delays and the transition to new emission norms, the long-term prospects remain strong. Government support for infrastructure development and exports, coupled with companies like JCB India adapting to market challenges and leveraging global opportunities, positions India to potentially overtake China in construction equipment sales by 2030.