The 10-Tonne to 35-Tonne segment constitutes the largest slice of the excavator market supported by investments in the roads and highways.

– Rahul Shorey

National Head – Construction, Tata Hitachi Construction Machinery

What are the positive factors that are impacting excavators to stay ahead in the earth moving equipment market?

As the country’s economy grows and matures it encourages more mechanisation. This trend is also supportive of earthmoving equipment. Further, increased construction and subsequent growth of the earthmoving segment is also directly and indirectly supported by several factors. These include, among other, government focus on infrastructure as a measure to sustain future growth despite the pandemic, increasing urbanization, higher per capita income and increasing aspirations of a young and mobile population, India’s strength in global IT exports driving real estate growth.

In terms of capacities, the mini excavator is driven by increased mechanization for higher productivity. This segment will also be supported by increased allocation for the implementation of rural water supply programme. We also anticipate some migration from backhoe loaders since it has become costlier post CEV-IV emission norms implementation this year. Similarly, the 7-Tonne market is driven by rural infra initiatives like Pradhan Mantri Gram Sadak Yojana (PMGSY), Pradhan Mantri Awas Yojana (PMAY), irrigation and brick industry.

The 10-Tonne to 35-Tonne segment constitutes the largest slice of the excavator market supported by investments in the roads and highways having the maximum impact. This is followed by demand from stone quarries, granite mining, sand mining, general earthwork, irrigation, railways, urban development, and real estate among others.

Notwithstanding the drop in coal production last year, as well as the recent coal crisis, focus on over burden removal by various Coal India subsidiaries continues so that coal production can be increased as and when required. This sector continued to perform well even during pandemic-related lockdowns. Further, auctioned iron ore mines in Odisha that are yet to restart are expected to add to the demand. All this is expected to drive growth in the mining excavator market this year.

We, however, continue to keep an eye on the challenges as well, which among other factors, include supply side dislocations and commodity price increases.

What are the latest trends in the cab design for excavators? What is the bearing of disruptive technologies on the design of the cabs?

The cab is very important for operator comfort and productivity. Cab designs have undergone significant change from welded frames to metal form work that has not only improved aesthetics, but also greater structural strength.

We have continuously worked on providing superior safety, ergonomics, comfort through various areas of development. These include cabin protection and compliance to international safety standards, seating comfort to match international standards, proper layout of controls for better ergonomics, quality materials and build quality to ensure proper performance of the machine, proper layout of components and following proper standards of safety in the design of the machines.

Our stringent testing and validation standards are developed based on our parent Hitachi Construction Machinery’s international quality standards, which help us provide some of the most advanced, reliable, and safe solutions to our customers.

What are the advancements made in the engine used in excavators?

Engines by themselves have undergone a sea change in terms of technology, from mechanical to electronic engines, and from naturally aspirated to turbo charged engines to CRDI technology today. In addition, use of better materials like coated steel and alloys, as well as better manufacturing technologies have led to overall improvements in the engine in terms of performance, reliability, and durability.

Also, our emphasis has always been to keep the customer foremost in our mind. We have therefore, laid special emphasis on customer-friendly solutions that are easy to adapt to and help in enhancing usability and serviceability.

With this focus, we have worked towards hydraulic efficiency enhancement and engine power optimisation. This goes a long way in ensuring that our machines are some of the most fuel efficient across specific classes.

Apart from this, in line with the direction of the government to go green, we are migrating our engines to ensure emissions compliance as per CEV-IV norms. This will further enhance the fuel efficiency of our machines.

All these initiatives ultimately add up to enhance productivity without compromising on performance, thereby enhancing profitability for the customer.

What is the future outlook and growth prospect in the excavator market?

In the Union budget presented in February 2021, the government reiterated its focus on investment in infrastructure by enhancing the Capex to Rs. 5.54 lakh crores – up nearly 26% year-on-year. The state governments too have announced a similar increase in Capex for this fiscal year. We also have seen how the market moved last year through the pandemic. Hence, despite the second Covid-19 wave, we are optimistic that the trend will continue.

We recognize that the second wave of the pandemic was a temporary setback, and that to make up for lost time, the government will continue to focus on enhancing and accelerating investment in key infrastructure drivers like roads and highways, water supply, railways, ports, and airports.

We therefore expect the market to continue to grow, which will be further aided by the low base of the first quarter of last year. Further the government has articulated its commitment towards sustaining till 2025, the execution of the National Infrastructure Pipeline (NIP) amounting to Rs. 112 lakh crores. We foresee that these factors should aid the continued growth of the excavator market over the next couple of years too.

What are the risk factors & challenges faced by excavator manufacturers in today’s market scenario?  

There are still challenges that can impact growth. Some of the risk factors include continuing uncertainty around the pandemic, rapid and unprecedented increase in input costs, supply side dislocations due to freight delays, high freight costs, upcoming state elections, cautiousness of financers, climate change leading to uneven and disruptive rainfall are some of the risk factors.

Further, volatility in global fuel prices, interest rates, flow of capital may affect the government’s ability to raise capital to sustain infrastructure investment. The industry is highly dependent on road and highway construction, given the size of investment. Any slowdown in the same has an immediate impact.

We have already seen the impact of emission change to CEV-IV in wheeled equipment sales. This presents a big risk factor for the earthmoving industry. To add to the uncertainty, the timelines for such migration are still not clear. Other challenges include availability of trained manpower for customers as well as challenges in attracting top talent to this sector.

Hits: 22