India’s construction equipment market saw retail sales plummet 41% year-on-year in June 2025, with volumes dropping to 5,244 units from 8,879 in June 2024, according to FADA Research. The sharp contraction reflects sustained demand weakness, though a 3.1% sequential increase from May suggests a fragile stabilization.
JCB India Dominates as Market Contracts
JCB India bucked the downturn, maintaining sales at 2,416 units while expanding its market share to 46%—up from 27% a year earlier. The company now controls nearly half of all wheeled construction equipment sold in June, capitalizing on rivals’ struggles.
Other major OEMs posted steeper declines but managed marginal share gains:
- Action Construction Equipment (ACE): Sales fell to 624 units (down from 901), with market share rising to 11.90%.
- Ajax Engineering: Sold 413 units (down from 660), increasing share to 7.88%.
- Escorts Kubota: Sales dropped to 380 units (from 518), but share improved to 7.25%.
- Bull Machines: Market share grew to 3.11% despite lower volumes.
Structural Headwinds Weigh on Recovery
Crisil Ratings Director Poonam Upadhyay cites a high base effect and persistent demand weakness for the slump. Monsoon delays, land acquisition hurdles, and uneven capital expenditure have suppressed fleet utilization, deterring new investments.
While June’s modest month-on-month growth offers limited relief, analysts caution that the India construction equipment market remains vulnerable. Without stronger policy support or accelerated capex, the sector may face prolonged sluggishness through late 2025.
