In short: Construction Equipment Sales Q3 FY26 fell 9% year on year to 35,937 units, according to ICEMA. Domestic sales did the damage, down 13% on cautious contractor spending and slower infrastructure execution, while exports grew 16% and held the industry up. Every major segment fell — earthmoving 9%, material handling 10%, concrete 8%, road equipment 7% — with material processing nearly flat at 1%. December 2025 showed the first sign of a floor, up 2% month on month.

Construction Equipment Sales Q3 FY26: what ICEMA reported

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.

Why domestic sales fell

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.

Exports carried the quarter

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

Segment by segment

According to industry statistics, there was a downturn in sales for many kinds of equipment. Earthmoving equipment — excavators and backhoe loaders — 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 — compactors and motor graders — sales declined 7%. Material processing equipment has remained fairly steady, with a decrease of only 1%.

Signs of a floor in December

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.

What it means for owners and buyers

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. For the full-year retail picture from the dealer side, see our report on construction equipment sales in India; if a soft market is the moment you plan to buy, work the funding out on the equipment finance page first.

Figures are as reported by ICEMA for Q3 FY26 (October-December 2025).

Sales figures, segment splits and outlook commentary are as published by the industry association on the date shown and are revised from time to time. Confirm the current numbers with the official source or your dealer before you act on them.