As we expand our local production capabilities, we have begun manufacturing 3-ton and 5-ton wheel loaders at our Chakan plant, in Pune.

Sharwan Agnihotri
Head – Mining & Export Business, HD Hyundai CE (India)

How do you view the demand trend for construction equipment?

With the Government of India prioritizing infrastructure and mining, the equipment industry grew by 8% last year. This year, demand is driven by significant activity in the roads and highways sector. We manufacture excavators from 3 to 52 tons used in road construction. We expect strong growth potential in India over the next 5 to 10 years.

Can you elaborate on the key equipment range at HD Hyundai CE?

Our primary equipment segment is excavators, ranging from 3 tons to 52 tons. We have recently started manufacturing 3-ton and 5-ton wheel loaders. With the implementation of new emission norms, we showcased the new BS-V range of wheel loaders at the recent bauma CONEXPO India exhibition, and we are displaying them here as well. We plan to introduce more variants of wheel loaders that comply with the latest emission norms. Additionally, we are working on new product developments for the road sector. With India emerging as a key market for global players, our management is placing significant focus on expanding our presence here.

Project execution in roads slowed down during the initial quarters of 2025. How do you view the scenario now and for the year ahead?

Minister Shri Nitin Gadkari, in his statement at bauma CONEXPO India, mentioned that project announcements and execution were delayed due to elections and other priorities. However, the pace is picking up, with many projects announced in December and January. The focus will now shift to execution, and we do not foresee the government reducing the pace of infrastructure projects. With initiatives like Make in India and the push for manufacturing growth, the demnd for better infrastructure, including roads, will continue to rise.

How is Make in India strengthening your business prospects?

Our Chakan factory has been manufacturing excavators, and we have now expanded production to include 3-ton and 5-ton wheel loaders. Earlier, we imported these machines, which impacted price competitiveness and availability. Local manufacturing will help improve supply and make us more competitive in this segment. We expect 10-12% growth in 2025 compared to 2024.

How do you view the demand in the mining sector?

We currently offer excavators ranging from 30 to 50 tons for mining applications, primarily used in overburden removal for coal and iron ore mines. Coal and iron ore remain key mining segments, and as economic growth drives steel demand, the need for these resources will continue to rise. India still imports a significant amount of iron ore, highlighting the growing need for domestic mining, which, in turn, will drive demand for mining equipment. This sector requires large excavators above 50 tons, and we are evaluating the feasibility of entering this segment. At the same time, we aim to strengthen our presence in the below-50-ton category by offering greater value to customers and expanding our market share.

What policy support do you seek for the construction equipment industry?

In our industry, 90-95% of equipment purchases are financed. Encouraging leasing could create opportunities for 10-20 leasing companies to buy equipment in bulk from manufacturers and offer them on short- and long-term leases. A simplified tax structure from the government could support this shift. In many developed markets, leasing constitutes a significant share of total equipment demand.

Another area of focus should be a scrapping policy for construction equipment. Phasing out older machines would boost new sales and encourage the adoption of advanced models. Additionally, implementing safety and emission regulations aligned with global standards will help India emerge as a leading manufacturing hub for construction equipment.