Domestic CE sales decline 9% in FY26 despite strong export growth

Sales of construction equipment in the domestic market fell 9 per cent to 81,566 units in the first nine months of this fiscal year due to slower infrastructure activity and project execution challenges, according to industry body ICEMA.

Sales stood at 89,244 units in the corresponding period of the preceding year.

In a statement on Monday, the Indian Construction Equipment Manufacturers' Association (ICEMA) said the exports of construction equipment rose to 12,469 units from 9,733 units during the period under review.

Overall, the total sales (including domestic and exports market) declined 5 per cent to 94035 units during April-December period of this fiscal year from 98,737 units in the year-ago period.

While domestic sales reduced almost 9 per cent, exports grew 28 per cent, cushioning the overall industry decline to 5 per cent in the first nine months of FY26, indicating robust overseas demand and market diversification, ICEMA said.

Deepak Shetty, President, ICEMA and CEO & Managing Director, JCB India Ltd, said, "The domestic demand for YTD FY25-26 has remained muted. The growth of our industry is significantly dependent on infrastructure development projects where we experienced some headwinds."  ICEMA said the industry looks forward to a strong capex allocation and expeditious government project awards in the upcoming Budget.