Chinese imports hit Indian construction equipment manufacturing sector

Tata Hitachi, a joint venture between Japan's Hitachi Construction Machinery Company and Tata Motors, has lost market share in recent years. One reason was the influx of Chinese imports

With Chinese share in construction equipment business in India increasing to 22 per cent, two Indian players in the sector on Wednesday expressed concern over the low-cost imports from the neighbouring country adversely affecting domestic firms.

 

Owing to cheaper imports, Tata Hitachi, a joint venture between Japan's Hitachi Construction Machinery Company and Tata Motors, has lost market share in recent years, while state-owned BEML was edged out from the construction equipment segment some years back and is now making a comeback.

 

Speaking on the sidelines of CII Global Mining Summit, Sandeep Singh, managing director, Tata Hitachi, said the government is investing a lot on infrastructure and mining. “The advantage should go to Indian companies who have put in investment many years back, localised components as part of self-reliance and generated employment,” he said.

 

“Today, some of the players in the industry, especially Chinese manufacturers facing challenges in their country, are bringing in equipment at a very low price and trying to eat into the share of Indian manufacturers. This is not good for the Indian economy. The government needs to look at this and do something,” he added.

 

 Tata Hitachi has a 23 per cent market share in construction equipment, which was at 28 per cent about five years back. One of the reasons, Singh said, was Chinese imports.

 

He said that Chinese penetration had increased to 22 per cent.

 

Singh also said that imports were restricting the growth of Indian manufacturers. “The government should look at the duty structure.”

 

In the financial year 2025, Tata Hitachi had set sight on a revenue growth of 10-15 per cent. However, so far, it was at the same level as last year. Revenue in the financial year 2024 stood at Rs 5,000 crore.

 

State-owned BEML was edged out from the construction equipment segment some years back due to competition from cheaper imports and is now making a comeback.

 

“In the construction equipment segment, the gap between Chinese products and what we were able to offer was huge. And the construction sector is mostly led by private companies who will go with the better price or leasing of equipment. So, there our interests were definitely hurt and we literally exited the segment,” Shantanu Roy, chairman and managing director, BEML, said.

 

However, BEML, which has chalked out a roadmap for growth, restructured the organisation into 11 strategic business units (SBUs) and two micro SBUs this year. The reorganisation is aimed at driving growth in emerging markets and tapping into future opportunities.

 

“Looking at the size of the construction sector, we decided to again get into the construction sector with a separate SBU. We have started in a small way. This year, we hope to get to Rs 300 crore and in two years, to Rs 1,000 crore,” Roy told the media on the sidelines of the summit.

 

BEML, which recorded a revenue of Rs 4,054 crore is looking to grow to Rs 10,000 crore in five years.