Mahindra Construction Equipment (MCE), a division of the Mahindra Group, anticipates a growth trajectory after the implementation of the new BS-V (CEV/Trem) norms in the construction equipment industry. The company expects a short-term market slowdown in FY 2024-25 but eyes a return to peak levels by FY 2026-27.
BS-V Implementation and Market Impact:
1. Short-Term Slowdown: The transition to BS-V norms is expected to briefly slow down the domestic construction equipment market in FY 2024-25.
2. Return to Peak Levels: MCE projects a return to the previous peak of FY 2018-19 by FY 2026-27, driven by infrastructure projects and development activities.
BS-V Readiness and Product Launch:
1. BS-V Range: MCE launched its new BS-V range of construction equipment at EXCON 2023 in Bangalore.
2. Product Offerings: The company introduced the Blaxo X m-Dura in the Truck and Bus Division and showcased the LiftMaster compact crane at the event.
Market Presence and Growth Strategies:
1. Backhoe Loader Segment: MCE aims for a significant share in the backhoe loader segment, estimating a 15-20% YoY growth in 2023-24.
2. Motor Grader Leadership: As the market leader in motor graders with a 25.3% share, MCE anticipates a growth of 20-25% in the segment.
3. B2B and Fleet Focus: The company targets the B2B segment, emphasizing fleet operators, with plans to challenge market leaders.
Export and Market Expansion:
1. Export Markets: MCE eyes expansion into new export markets, including Brazil, South America, Tanzania, and Jordan.
2. Carbon Neutrality Goal: The Mahindra Group’s goal of being carbon neutral by 2040 aligns with MCE’s exploration of alternative fuels for construction equipment.
Upcoming Trends and Technology:
1. Telematics Integration: MCE foresees increased adoption of telematics in the construction equipment sector.
2. Alternative Fuel Technologies: The company remains open to alternative fuel technologies and envisions a carbon-neutral future. While diesel remains prevalent, MCE anticipates exploring various fuel options.
Commercial Vehicle Market Expectations:
1. Tipper Segment Growth: MCE anticipates robust growth in the tipper segment and aims to improve its market share, especially in tipper trucks.
2. Market Share Improvement: The company intends to enhance its market share in trucks and tippers with the introduction of new models.
Jalaj Gupta, Business Head- Commercial Vehicles at Mahindra & Mahindra, highlighted the company’s optimism about the long-term growth potential in the construction equipment sector and its commitment to exploring sustainable and technologically advanced solutions.
