LiuGong India Steps Up Its Growth Strategy With New Business Expansion Plans

LiuGong India — a subsidiary of the global Chinese construction equipment giant LiuGong Group — has been steadily expanding its footprint in the Indian market, driven by rising demand for construction machinery and the country’s infrastructure boom. From strategic investments in manufacturing capacity to partnerships and product diversification, LiuGong India continues to strengthen its position as a key player in the sector.

Making India a Strategic Manufacturing Hub

A cornerstone of LiuGong India’s growth strategy is expanding localized manufacturing. In early 2025, LiuGong India laid the foundation stone for a new manufacturing plant in Pithampur, Madhya Pradesh, covering roughly 20 acres with an initial investment of around $2.8 million. This facility is being developed to produce excavators domestically and aims to reduce import reliance while meeting India’s growing demand for robust construction equipment. The plant’s initial capacity is set to produce about 6,500 units, providing a significant boost to the company’s local production output.

By strengthening local production, LiuGong India is not just catering to domestic demand but also supporting India’s vision of manufacturing self-reliance in heavy machinery. Increased local manufacturing also means quicker deliveries, better customization for Indian conditions, and improved service response times — all crucial for winning customer trust in the long term.

Investment Plans and Export Ambitions

Beyond building new manufacturing capacity, LiuGong India has significant investment plans on the horizon. The company reportedly plans to invest around ₹250 crore (roughly $30 million) to further expand its Indian operations, with the goal of turning India into a global sourcing hub for specific machines like hydraulic excavators and compactors. These locally manufactured products are expected not only to meet domestic demand but also to be exported to SAARC countries, the Middle East, and Africa.

This strategy signals LiuGong India’s long-term commitment to the market, even amid challenges in the construction sector. Having already sold over 4,000 machines in India, and with expectations of selling approximately 1,500 units in the current fiscal year, the company is positioning itself for further growth supported by localisation and export plans.

Strategic Industry Partnerships

Expanding the business ecosystem through partnerships is also part of LiuGong India’s strategy. At EXCON 2025 — India’s premier construction equipment trade fair — LiuGong India signed a strategic MoU with Trishakti Industries Limited valued at approximately ₹250 million (about $3 million) for the procurement of boom lifters. This partnership is aimed at diversifying equipment offerings for industrial and construction segments, particularly in infrastructure, power, railways and renewable energy sectors.

Such collaborations help LiuGong India extend its market reach while also giving customers access to newer technologies and increased fleet capabilities, enhancing service offerings in the fast-growing heavy equipment rental and project execution markets.

Innovation and Green Initiatives

While expansion in India is a key focus, LiuGong’s broader corporate strategy also aligns with innovation and sustainability, which indirectly benefits its Indian operations. Globally, LiuGong is emphasizing electrification and intelligent machinery through its new E-Intelligence brand — a holistic approach that combines electrification, digital optimisation, and lifecycle services to reduce emissions and improve overall machine uptime and efficiency.

Although most of these advanced technologies are still rolling out internationally, such initiatives indicate the type of products and systems that could trickle into the Indian market in the coming years, especially as customers increasingly demand energy-efficient and data-driven solutions.

Outlook: Positioned for Long-Term Growth

LiuGong India’s expansion strategy hinges on local manufacturing, export hubs, strategic partnerships, and alignment with global sustainability trends. By investing in production capacity at Pithampur and leveraging India’s infrastructure demand, the company is addressing both immediate market opportunities and laying foundations for future competitiveness.

Through these initiatives, LiuGong India is not just participating in India’s construction equipment market but actively shaping its growth trajectory — strengthening its customer base, enhancing product delivery, and readying itself to support major infrastructure and industrial projects in the years ahead.