Construction Equipment Sales Drop 21% in January

The construction equipment industry in India began 2026 with a significant slowdown, witnessing a 21 per cent decline in retail sales in January compared to the same month last year. According to data from the Federation of Automobile Dealers Associations (FADA), all 12 major manufacturers reported lower sales in January 2026, indicating broad-based weakness across the segment.

Overall, the industry sold 6,834 units in January 2026, down from 8,660 units in January 2025. The drop is primarily attributed to erratic monsoon patterns and slower infrastructure execution across the country.

JCB India Maintains Market Lead Despite Sales Drop

JCB India Ltd, the leading player in the construction equipment segment, reported an 8 per cent decline in January sales, moving 3,685 units compared to 4,006 units a year earlier. Despite the drop in volume, the company increased its market share to 53.92 per cent from 46.26 per cent over the last 12 months, reflecting its continued dominance in the sector.

In comparison, Action Construction Equipment, the second-largest manufacturer, saw a sharp 34.99 per cent fall in sales. Escorts Kubota Ltd, in third place, reported a 20 per cent decline in January sales, showing that the slowdown affected both leaders and smaller players in the industry.

Industry Outlook Shows Early Signs of Stabilisation

Escorts Kubota highlighted that while demand remains soft and infrastructure execution continues at a slower pace, January’s industry volume indicates early signs of stabilisation. A gradual improvement is expected, supported by timely project awards, better on-ground execution, and anticipated higher government spending throughout the year.

Poonam Upadhyay, Director at CRISIL Ratings, noted that demand has been subdued through most of the ongoing fiscal year, with trends continuing into January. She pointed out that road construction, which accounts for nearly 40 per cent of equipment demand, has slowed, with execution rates expected to drop to 23-25 km per day this fiscal from 25-27 km per day last year.

Monsoon and Real Estate Activity Impact Sales

An erratic monsoon delayed the usual post-monsoon ramp-up in construction activity, while stabilising real estate developments also weighed on equipment demand. The decline in sales is further influenced by a high base effect following strong fleet additions in FY23-FY24. Utilisation levels have not yet reached previous peaks, contributing to the softer numbers observed in January 2026.

The industry is now watching for signs of recovery, with expectations that project awards and government spending will help support growth in the coming months.