▶ Rises to top-ranking spot for the first time after its market entry into India in 2008 by selling 382 units (19% of market share) in April
▶ Construction equipment market of India is expected to grow 7 percent a year until 2026… KRW 1,657 trillion worth of infrastructure investment is also planned.
▶ “We will reap the benefits of our market diversification strategy with a strong market presence in India, demonstrating unrivaled potential.”
HCE, an affiliate of Hyundai Genuine (an intermediate holding company of Hyundai Heavy Industries’ Construction Equipment Division), announced that it seized the top-ranking spot in monthly sales of excavators for the first time in 14 years, following its market entry into India in 2008.
In April this year, HCE sold 382 excavators, comprising a 19 percent market share in India, outcompeting the main Japanese competitor (17.3%). This year, HCE has been rapidly growing in market share against Japanese competitors with a high level of recognition and Chinese competitors based on price competitiveness, posting the second or third rank in market share by selling 286, 382, and 336 excavators in January, February, and March respectively in India.
HCE has rolled out a special sales promotion program for small-sized excavators to expand its market share, in addition to a strategy to strengthen after-sales services to deal with matters like equipment failure issues better than competitors by introducing a cross functional team (CFT).
The company has also been committed to improving its sales network and producing customized equipment in its factory in Pune, India, while aggressively pursuing digital marketing amid the COVID-19 pandemic. It is evaluated that such factors have combined to lead to the result of attaining the top spot in monthly sales.
Even in parts sales, HCE posted USD 2.25 million (KRW 2.88 billion) in April, a record figure accomplished in its history in India.
The overall prospects of the Indian market are also bright. According to Research and Markets,
the Indian construction equipment market is expected to post a high annual growth rate of 15 percent until 2024.
It is noteworthy that the Indian government is pushing forward with a large-scale infrastructure plan ‘Gati Shakti’, amounting to 100 trillion Rupee (KRW 1,657 trillion). In this year alone, it allocated 7.5 trillion Rupee (KRW 124 trillion), a 35.4 percent year-on-year increase, in the budget for infrastructure development.
Off-Highway Research, a British research institution specializing in construction equipment, expects that the number of crawler excavators sold in India will grow 7 percent a year on average and reach the mark of 30,000 units by 2026 based on the country’s investment plan.
Commenting on the matter, an HCE official said, “India is a construction equipment market with infinite growth potential. We view it as a core region where we need to operate with a market diversification strategy. We will strive to remain the leader in market share by developing customized equipment that fit local needs and winning customers’ trust by providing after-sales service far better than our competitors.”
Meanwhile, HCE plans to take part in EXCON 2022, which will be the largest-ever construction equipment expo held in South Asia, introducing all its excavator models (8 tons – 38 tons) and diverse attachments currently produced in India in a bid to speed up its expansion in the market. The said expo is being held in Bengaluru, India for five days (May 17 - 21).
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A 14-ton crawler excavator produced in HCE’s factory in Pune, India.