The Indian construction equipment industry saw a downturn in Q3 FY26, with total sales down by 9 percent from the same period last year, as per the data released by the Indian Construction Equipment Manufacturers Association (ICEMA). The total number of equipment sold during the period was 35,937 units, a 2 percent decline from Q3 FY24.

The major reason for the downturn was the low domestic sales. Domestic sales were down by 13 percent during the period compared to the same period last year, due to lower infrastructure development and cautious spending by contractors.

However, the exports segment continued to support the industry. The exports of equipment during Q3 FY26 were up by 16 percent compared to the same period last year, marking India’s growing importance in the global construction equipment manufacturing industry.

During the period from April to December 2025, the total sales of construction equipment were down by 5 percent compared to the same period last year. Domestic sales were down by 10 percent, while exports were up by a strong 28 percent, partly mitigating the domestic slowdown.

ICEMA Construction Equipment Sales

According to industry statistics, there was a downturn in sales for many kinds of equipment. Earthmoving equipment experienced a decline of 9% in Q3 FY26. Concrete equipment experienced an 8% drop, and material handling equipment had a 10% drop in sales. Road construction equipment sales declined 7%. Material processing equipment has remained fairly steady, with a decrease of only 1%.

In December 2025, evidence of the first signs of stabilization began. Total sales in December increased by 2% compared to the month before, but still represented a 4% decrease from the year before. Domestic sales fell 9%, but exports increased by 17% when compared to December 2024.

While there has been a short-term slowdown domestically, the outlook for the industry remains stable, as there has been steady growth in exports as well as an improving trend over the past month, indicating a healthy construction equipment market that will gradually recover in the near future.