According to the Mid-Year Review from Off-Highway Research’s Indian Service, sales of earthmoving, roadbuilding and materials handling equipment, along with portable compressors, should reach 90,115 units this year. That would represent a 15 per cent increase on the 78,109 machines sold in 2017 and a near doubling of the market since the trough of 2014 and 2015.
The previous peak in construction equipment sales was 72,492 units in 2011, so demand in India had already surpassed that by the end of 2017. The robust growth and recent record demand has been largely due to the Modi Government’s efforts to speed up the pace of infrastructure development.
Commenting on the current market drivers, Off-Highway Research’s report said, “The surge in demand in the first half of 2018 resulted from increased activity in the construction and mining sectors, and the continued momentum following the GST (national sales tax) rate reduction in November 2017. Easy availability of finance, positive sentiments and replacement demand are other factors which helped the market to grow.”
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