Construction Equipment sales may surge 15% to reach record high in 2017

A national daily reported that a surge of 10 %-15% may be witnessed in construction equipment sales to reach a record high in 2017, supported by government’s focus on infrastructure building.

Sales of equipment such as pick-n-carry cranes, excavators, backhoe loaders and earth moving machines had peaked in 2011 at 52,500 units. Last year's volumes are close to the figure.
 
Despite a 6-8% increase under GST in construction machines, the street expects growth in this quarter. The equipments previously attracted an excise duty of 12.5%, plus state taxes that ranged from 6% to 13.5%. Together, the tax incidence was 26% at the most. It is now 28%.

The government is looking to invest in smart cities as well as developing infrastructure projects such as highways, regional airports, inland waterways, railways, etc, which may stimulate growth in the sector to gain further momentum in the next 3-5 years.

As per Indian Construction Equipment Manufacturers’ Association, sales of construction equipment declined for three straight years before rising 2.5% to 36,800 units in 2015 and 41.5% the year after, to 52,100 units.