Construction industry is one of the key Industries which contribute around 7% to 8% for GDP and giving direct and indirect employment more than 33 million people. The industry would grow around 5% in 2013-14 compare 5.9 per cent in 2012-13. Construction accounts for more than 60 per cent of the total investment in infrastructure project.
In BRIC countries China is biggest market for construction equipment. Catalyzed by the recent developments, Brazil has become the most attractive market. Russia is going thru a tough economic patch; it is least attractive market in this segment. India is still one of the biggest market however currently it going thru slowdown which impact its growth.
Construction Equipment are the major tools for the industry. Backhoe loader, Crawler Excavator and Mobile cranes are top three segments.
This equipment is further divided into Indian, JV, European and Chinese/Korean category. Even many Chinese manufacturers are also aggressive to tab this market.
CNH is the market leader in compactor with 29% market share. Due to its product position and performance their market share is increasing consistently.
Telcon is the market leader in excavator. It is having JV with Hitachi. However Telcon is the market leader but Hyundai, Volvo, Kobelco has increased their market share.
Price remains the top criteria when making purchasing decision over product performance. The factor has been highly influenced by the current economy and poor market sentiments. Having said so, a turnaround in the order can be witnessed in recent future with the betterment of economic conditions. This will encourage buyers to prioritize Product performance and Maintenance cost as major purchasing criteria.
Source : ACG Data Bank