Domestic Construction Equipment Sales Down 5% in Q1 FY26, Exports Surge 34%

Key Highlights:

• Total CE sales at 28,687 units, down 1% YoY.

• Domestic sales fell 4.7% YoY to 24,809 units.

• Export sales rose 34.5% YoY to 3,878 units.

• Earthmoving equipment dropped 3.8% YoY.

• Concrete equipment grew 15% YoY.

India’s construction equipment (CE) industry saw a slight slowdown in the domestic market during the first quarter of FY26, but exports provided a significant boost. As per the latest report by ICEMA (Indian Construction Equipment Manufacturers Association), domestic sales dropped by nearly 5% year-on-year, while export sales recorded a strong 34.5% growth. The report highlights the need to accelerate infrastructure projects to revive demand in the coming quarters.

Also Read: Construction Equipment Sales June 2025: JCB Leads But Market Share Drops

Domestic Sales Face a Decline

From April to June 2025, total construction equipment sales in India stood at 28,687 units, which is 1% lower than the same quarter last year. Compared to Q4 FY25, this represents a sharp 30% decline. Domestic sales accounted for 24,809 units, down by 4.7% from 26,020 units in Q1 FY25. These numbers also slightly trailed Q1 FY24, where 24,891 units were sold.

The decline is mainly due to weak demand in key infrastructure sectors such as roads, highways, and mining. In addition, infrastructure activity remained uneven across different regions of the country, adding to the slowdown.

Segment-Wise Sales Performance

The ICEMA report highlights varying performance across equipment categories:

• Earthmoving Equipment: Sold 17,021 units, marking a 3.8% YoY decline.

• Concrete Equipment: Saw growth of 15% YoY, with 3,477 units sold.

• Material Handling Equipment: Dropped significantly by 24.5% YoY to 2,673 units.

• Road Construction Equipment: Sales declined 11.8% YoY to 1,072 units.

• Material Processing Equipment: Registered a 4.6% YoY rise with 566 units sold.

Exports See Strong Growth

Exports brought positive news for the CE sector, with 3,878 units shipped during Q1 FY26. This is a 34.5% rise compared to 2,882 units exported in Q1 FY25. All equipment segments contributed to this growth, except material processing equipment, which saw a slight decrease.

Industry Leaders Call for Faster Infra Execution

Industry experts emphasized that although a seasonal slowdown was expected, the steep decline in domestic demand, particularly in road construction and mining, is concerning. They urged quicker execution of infrastructure projects to help revive sales.

V. Vivekanand, President, ICEMA & MD, Caterpillar India Pvt. Ltd., said,

“A seasonal slowdown was anticipated, but the sharp dip in roads and mining demand is a concern. Accelerating infrastructure execution is critical for demand recovery in the coming quarters.”

Deepak Shetty, President Designate, ICEMA & CEO & MD, JCB India Ltd., added,

“The sales trend mirrors the pace of infra development. While government direction remains positive, project delays at the state level are slowing outcomes. Fixing this is essential to maintain investor and contractor confidence.”

Jaideep Shekhar, Convener, ICEMA Industry Analysis & Insights Panel & VP & MD, Terex India Pvt. Ltd., noted,

“The 1% YoY and 30% QoQ fall indicates the impact of regional disparities and post-CEV Stage V buyer sentiments. We expect better momentum with improved government support on project execution.”

Also Read: CASE Launches Stage V Construction Machines in India with Advanced Safety, Comfort, and Emission Norms

CMV360 Says

India’s construction equipment sector is currently facing mixed signals. While domestic demand has declined, the strong rise in exports shows global interest in Indian CE products. Industry leaders stress that speeding up infrastructure work at both the central and state levels is essential for demand revival. The next few quarters will be critical for the CE industry as it watches the government’s moves on project execution and funding.