Equipping the Path Ahead

Eyeing on the evolving opportunities from the infrastructure sector, the construction equipment and commercial vehicle industries aim to regain its lost shine through the path of tech-transformations.

- Veena Kurup

Infrastructural developments are always accredited as a ‘Growth Factor’ not just for the economy but for the commercial sectors driving a nation. With India ambitiously pacing ahead with an infra-growth agenda, the opportunities are considered as immense for the construction sector, largely for the equipment and heavy vehicles segments backing it. The year 2019 kicked off on a promising note for the construction equipment and heavy commercial vehicle sectors with the Modi-led Government regaining its administrative control and larger focus on achieving an interface lift with big-ticket projects.

However, with the political showdown of elections, despite the growth factors erected, the industry saw a dip or rather moved on a slower pace as compared to the 2018 growth figures. Confirming this scenario is ICRA’s recent research report. Shedding light upon the same, Pavethra Ponniah, Vice President & Sector Head – Corporate Ratings, ICRA discloses, “Slow movement in award of road projects during the past several quarters, delays in payment to contractors, continued land acquisition issues and overall tightness in the financing environment has led to a contraction in fresh equipment buying since early CY2019.”

However, with the focus still largely on infrastructure as the core growth mantra and the expected big-ticket projects to grab its pace, stakeholders maintain an optimistic outlook for the industry.

Equipment Market