There has been a seismic shift underway in the sales trends in construction equipment globally, a trend that is expected to continue. India has witnessed a substantial number of regional equipment manufacturers and international OEMs from various parts of the world are stepping up their presence and activity levels in key markets, especially in India.
“India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players into the market. India is also one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business,” says Rajesh Nath, Managing Director, VDMA India.
Speaking about world market trends and the potential India holds, Luca Nutarelli, Secretary General, Unacea (Italian Construction Equipment Association), says, ”USA, which went from 28 per cent in 2006 to 12 per cent in 2011, is expected to recover three percentage points by 2016, reaching the 15 per cent of world demand. The analysis of emerging countries reveals a steady growth of the Indian market share (from 3 per cent in 2006 to 5 per cent in 2011, to the forecast 8 per cent in 2016) and a substantial slowdown in the Chinese sector, that, having grown from 18 per cent in 2006 to 42 per cent in 2011, should now reduce its share to 37 per cent by 2016. In Brazil, the forecasts of the association Sobratema estimate a ten per cent growth in the sector in 2013.”
Says Joanna Oliver MBE, Director of Global Programmes, Construction Equipment Association, CEA, (UK), “Although India is a smaller market for construction equipment than China, the growth continues to be strong and the UK sees it as one in which to expand export potential.” According to Joanna, the construction equipment sector in the UK is worth in excess of $13.5 billion each year and the UK construction equipment sector exports around 70-75 per cent of production.
“The objectives for Ubifrance in India for 2013 is clear: to accompany a total of 350 new French SMEs to do business in India in all four main sectors, agro business, infrastructure transport industry, identification and technology and health and consumer goods sector,” says Sophie Clavelier, Head of Infrastructure, Transport, Industry Department, French Trade Commission Embassy of France, New Delhi.
According to Jorge Cuartero, Managing Director, ANMOPYC, India is one of the most interesting markets. Jorge says,” Our main purpose is the development and promotion of member companies’ sales in foreign markets, along with the intensive search for new markets and the protection of the members` interests. The Indian market has turned into one of the main world markets; therefore, ANMOPYC and ICEX (Spanish Institute for Foreign Trade) are banking on it for promoting Spanish equipment.”