Companies are working towards leveraging digital technologies such as IoT, big data, automation, AI etc. and integrating the same in the upcoming machines, says Sandeep Mathur, Brand Leader- India & SAARC, CASE Construction Equipment.

How is the revival of the earthmoving equipment market in India after the pandemic impact?

The pandemic and the consequent lockdown had affected businesses across sectors leaving them with multiple challenges and roadblocks to deal with. However, the various initiatives proposed by the Government of India as well as steps taken by organisations internally have led to an upward shift and the consequent growth in the industry. 

Multiple initiatives and projects were announced such as the bid for 1,000 km highway construction worth ₹50,000 crore. The Budget 2021-22 has put a lot of focus on reviving the infrastructure sector along with many schemes for contractors, daily wagers etc. 

These initiatives are a testimony to the fact that construction and infrastructure activities in India have increased during and post the lockdown, indicating the rapid growth expected in the industry in the coming years. 

What are the new technology advancements in excavators and backhoe loaders?

With increased focus towards newer technologies, digitisation is currently the biggest trend in the construction equipment industry. Companies are working towards leveraging digital technologies such as IoT, big data, automation, AI etc. and integrating the same in the upcoming machines. We can use these emerging technologies to create smart tools and factories for the future which will help us increase the productivity and efficiency.

In the backhoe loader and excavator segment as well, the focus will be to integrate these newer technologies and features in the machines to cater to the needs of the consumers. 

What do customers look for in your range of earthmoving equipment and how are you addressing these needs?

Earthmoving machines are an important equipment in any construction activity. Consumers look for multiple factors before purchasing an equipment. The most important ones that are considered before a purchase are performance, efficiency, size, project requirements, total cost of ownership, warranty, maintenance, after sale service etc. 

Other than these, the functionality and area of use are also important factors. Consumers want machines that can be used in various activities such as moving large amounts of earth, digging, grading soil, landscaping, removing dirt and rocks, demolition work and more.

How are rentals and equipment financing solutions supporting the growth of the earthmoving equipment market?

With the pandemic and the consequent lockdown, purchasing power of consumers was impacted, especially when it comes to heavy machinery. Therefore, alternates such as rental of equipment, other solutions like finance schemes, loans etc. gained prominence that enable continuity in CE business.

With prolonged impact of pandemic, securing finance is becoming a challenge so there could be a possible surge in the rental market. Consequently, Indian construction equipment rental market is anticipated to register a CAGR of about 5.1 percent during 2020-25. 

At CASE, we have a financial arm in India called CNHI Capital, which provides a comprehensive range of services. It enables us to extend an extra line of credit to existing customers. Additionally, we regularly introduce lucrative schemes for our customers, to facilitate product purchase including seasonal schemes and product specific schemes. All these initiatives are centred towards easing down the burden on consumers so that they can make a purchase without any hesitation. 

What is your outlook on the market for excavators and backhoe loaders in the coming years? 

Excavators account for a bulk of revenue in the CE segment and its demand is expected to grow with a CAGR of 16 percent during 2021-23 and reach 28,000 units, as per Off-Highway Research report. 

For backhoe loaders as well, the market demand is back on track and the sale has also increased compared to last year. Owing to its versatility, backhoe loaders account to nearly 65 per cent of the construction equipment segment in India and India is the largest backhoe loader market. Therefore, with the government’s focus on infrastructure development, sale as well as demand of these equipment is expected to rise further in the coming times.