New Delhi: Construction equipment (CE) major JCB India expects flat growth for the industry in the first half of this fiscal thanks to a broader market slowdown coupled with the impact of new regulatory norms.
“We expect H2 to be better. A better monsoon should help the rural economy come back strongly. Overall, I see that it will either be flat or show a slight improvement over last year,” Deepak Shetty, CEO & MD, JCB India, told ETAuto. He projects a growth of about 3 per cent, in line with FY2024-25 levels.
Shetty was speaking on the sidelines of the annual session of the Indian Construction Equipment Manufacturers’ Association (ICEMA), where he formally assumed the role of President for the 2025–27 term. He takes over from V Vivekanand, MD of Caterpillar India, who led the association from 2023-25.
The Indian CE industry’s total sales rose to just about 1.40 lakh units in FY25 from 1.35 lakh units in FY24, owing to delayed infrastructure projects following elections. From January this year, India implemented Euro-V emission norms for the sector, triggering a price increase. So far, JCB has sold around 20,000 units compliant with the new standards.
Meanwhile, the company remains bullish on the long-term prospects of the industry, expecting India (now in third place) to overtake China and claim the number two global spot, behind the US, by the end of this decade.
Shetty expects JCB to grow in line with the industry. For FY 2025-26, capex is projected at around ₹200 crore.
US tariff impact
The Ballabgarh-based firm exports to 135 countries translating to around 25 per cent of its total machine production last year. The US remains one of JCB’s largest export markets, with nearly 10,000 machines shipped from India last year. With the ongoing geopolitical uncertainties, the company expects this share to remain flat in FY26.“The ever-changing geopolitical situation is certainly a challenge, but at the same time, the opportunity lies in the Indian market,” he said.
On the recent tariff hike, Shetty noted, “Certainly, in the short term, there is an impact. A 50 per cent tariff is going to make it costly. But we need to see exactly at the HSN code level how it impacts, because sometimes these are at a gross level.”
Additionally, the company is eyeing higher sales in Nepal, South Asia, Africa and Sri Lanka.
Hydrogen over electric
Shetty called hydrogen a “huge opportunity” for the CE sector, particularly for larger machines. “The torque requirement for big equipment makes electricity less practical. By the next decade, smaller machines, which today account for about 20-25 per cent of the market in India, will go electric since they operate mainly in urban areas. But larger, high-torque machines will go for hydrogen.”
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