Many companies are actively exploring export strategies to capitalize on global trade shifts caused by tariffs and supply chain disruptions.

Manjunath S
Director - MH Sales, SIOP, Marketing, Doosan Bobcat India

How do you perceive the recent tariff actions by the U.S. affecting the global construction and mining equipment market?

The U.S. tariff on key raw materials has impacted the CE markets globally which has increased the production costs resulting in higher equipment prices to customers. This has also resulted in project delays and increased operational expenses. Due to this, the industry had to review their sourcing strategies and also reconsider relocation of manufacturing to avoid this tariff scenario. Many projects are being postponed and financial forecasts are becoming more restrained. The impact of tariffs has created instability, limited growth in the global trade of the CE industry.

Do you foresee any direct or indirect impact on the Indian construction and mining equipment sector?

The Indian CE sector is likely to get impacted both directly and indirectly from this tariff actions. Indirectly, global supply chain shifts could create opportunities for India as an alternative manufacturing hub. However, higher global prices for raw materials and components could increase input costs for Indian firms, especially those dependent on imports. Directly, Indian manufacturers could benefit from trade diversions, gaining access to markets where U.S. or Chinese products are less competitive. Nevertheless, the increasing global equipment costs might increase domestic infrastructure project budgets.

Has the tariff war created disruptions in your supply chain, especially for components sourced internationally (e.g., from the U.S., China, Europe)?

Yes, the tariff war has caused significant disruptions, especially for components sourced from these countries. The tariffs have majorly increased the cost of imported parts such as engines, and electronics, besides metal components, which as impacted the margins and production costs. To ease such risks, many OEMs are diversifying their supplier base from China to Southeast Asia or Eastern Europe which also involves time and investment. Overall, the tariff has added pressure across procurement, logistics, and planning functions, influencing a change in global sourcing strategies to reassess a flexible and efficient supply chain.

Are you exploring alternate sourcing strategies to mitigate risks arising from global tariff uncertainties?

Yes, to avoid risks OEMs are adopting to alternative sourcing strategies like shifting sourcing from China to countries in Southeast Asia or within India. Localization is also gaining traction, with firms increasing domestic procurement to reduce tariff exposure and improve cost efficiency. OEMs are signing long-term contracts and partnerships with suppliers to stabilize prices and volumes amid ongoing trade fluctuations. This reduces dependency on one particular region and maintain competitiveness in a volatile global market.

Have you witnessed or do you anticipate an increase in input costs due to tariff-related issue and how are you planning to manage potential cost escalations — through price revisions, local sourcing, or other strategies?

As mentioned earlier, rising input costs due to tariffs on raw materials are a common challenge. Besides price revisions and local sourcing, supplier diversification helps reduce costs by exploring low-tariff regions. Long-term contracts with suppliers are used to lock in prices and reduce volatility. Together, these approaches help balance cost management with maintaining market share and profitability. Such multiple strategies allow OEMs to stay strong in a fluctuating trade scenario.

Are you exploring or expanding your export strategies in light of these global shifts?

Many companies are actively exploring export strategies to capitalize on global trade shifts caused by tariffs and supply chain disruptions. They are targeting new and emerging markets where demand for construction and mining equipment is growing, such as Southeast Asia, Africa, and the Middle East. This would help diversify revenue streams and reduce dependence on traditional markets impacted by tariffs. Overall, expanding export strategies is viewed as a key growth opportunity and risk mitigation tactic amid ongoing geopolitical uncertainties and evolving global demand patterns.

Could global trade tensions potentially boost domestic infrastructure investments and, thereby, local demand for construction and mining equipment?

Global trade tensions such as the current tariff uncertainties can boost domestic infrastructure investments as governments and companies seek to reduce dependencies on imports and strengthen local supply chains. This encourages spending on domestic project, driving demand for locally manufactured equipment. This infrastructure development increases economic growth, creates jobs, and improve self-sufficiency amid trade disruptions. However, this boost depends on government budgets, policy focus, and overall economic conditions.

How prepared is your company to meet a possible surge in domestic demand?

Doosan Bobcat India is well-prepared to handle a surge in domestic demand for construction and mining equipment. The company has invested in advanced manufacturing technologies to ensure high-quality production and operational efficiency. With a strong focus on meeting the needs of the growing Indian market, Doosan Bobcat India is strategically positioned to capitalize on increasing infra development activities.

What type of policy support from the Indian government would you expect to help the sector navigate potential global trade challenges?

Policy support such as incentives for local manufacturing, tax breaks and subsidies, would encourage domestic production and reduce import dependence. Simplifying regulations and easing customs procedures can improve supply chain efficiency and lower costs. Promoting infrastructure development through increased public investment would boost domestic demand for equipment. Additionally, measures to facilitate access to affordable credit for manufacturers and contractors would strengthen the financial strength. Such coordinated policies to improve ease of doing business will help the sector withstand global uncertainties and invest on growth opportunities.

Overall, do you view the current global tariff situation as more of a threat or an opportunity for Indian construction and mining equipment manufacturers?

The current global tariff situation presents both challenges and opportunities for Indian construction and mining equipment manufacturers. On the threat side, rising input costs and supply chain disruptions create short-term pressures, impacting production expenses and project timelines. However, these challenges also open significant opportunities. As global companies seek alternatives to tariff-affected regions, India can emerge as a preferred manufacturing and export hub, attracting investment and technology transfer. The overall scenario offers Indian manufacturers a chance to strengthen global competitiveness, expand export footprints, and increase market share both domestically and internationally.