Sales Of Construction Equipment Remains Flat In Q1 FY25

While industry body Indian Construction Equipment Manufacturers’ Association (ICEMA) has yet to release sales data for the quarter ended June 30, the industry estimates about 24,000 units have been sold during the three-month period, similar to the volume reported in the same period last fiscal year.

As per estimates. sales of construction equipment remained largely flat in the first quarter of the ongoing fiscal year, after posting robust growth the last two fiscal years, hurt by a slowdown in the award of road construction projects and subdued demand due to general elections.

While the election impact had hurt first-quarter sales, the rainy season when construction activity dwindles is likely to keep demand subdued in the rest of the first half of the ongoing FY25.

Sales of construction equipment in the local market rose 24% to 123,671 units in FY24. The growth was 29% in the fiscal year before that.

Besides the fall in the award of new road contracts, a slowdown in the release of payments for infrastructure projects too has affected demand. The ICEMA had a meeting with transport and roads minister Nitin Gadkari recently and has been assured of positive interventions.