REBOUNDING CONSTRUCTION EQUIPMENT MARKET ESCALATES THE PRE-OWNED CONSTRUCTION EQUIPMENT BUSINESS

The year 2021 was encouraging for the construction equipment market as the sales grew by 12% to transact over 82,000 units as per latest report published by Off-Highway Research. These numbers bring confidence while looking forward to the year 2022. We are already seeing sustainable growth in the numbers that brought the sales of Construction Equipment back to 2019 levels.

According to Off-Highway Research, construction equipment demand peaked at 68,193 units in 2011, but sales declined successively for the next three years to 44,514 units in 2014. However, the market began to move towards new heights from 2015 onwards. The construction equipment market grew to 73,031 units in 2017, breaching the earlier high of 2011. It further grew to peak at 98,386 units in 2018, but the market once began to fall to 83,470 units in 2019 and 72,925 units in 2020.

Increased activity in the construction equipment sector is due to the government pushing for robust growth in the construction of roads, bridges, railway infrastructure etc., and leading to an amplified need for construction equipment. A great deal of happening is also witnessed in the pre-owned construction equipment market which is fuelled by lower initial cost when compared to new equipment.

The Off-Highways Research further highlighted that the biggest increases in sales were for crawler excavators, mobile cranes and wheeled loaders. The largest segment backhoe loader sales fell marginally in 2021 to sale around 37,000 machines that is around 45% of overall sales.

India’s pre-owned Construction Equipment has also been transformed and shifted towards transparent process since our inception in 2011. We at Shriram Automall India Limited (SAMIL) have developed a professional and dedicated team across the country to aid the transparent and organised exchange of construction equipment. We offer multiple ways and means to buy or sell pre-owned equipment in as-is-where-is condition. We provide all kind of allied services like inspection, valuation, documentation, parking, financing, insurance and logistic services under a single roof to make every transaction seamless and have minimal turnaround time so that you can focus on your core business without any worries.

Till date, we have transacted over 65,000 machines of every category like Earth Moving Equipment, Road Construction Equipment, Lifting & Material Handling Equipment, Asphalt & Concrete Equipment, Mining Equipment and Tipper. As a company, we have also recorded very healthy growth in our construction equipment business in FY 2021-22.

Factors that are fuelling the sales and volumes of pre-owned Construction Equipment are increased government spending on infrastructure, new infrastructure projects requiring more construction machines to work simultaneously, the economy gaining momentum, easy availability of pre-owned Equipment, attractive prices of pre-owned machines, and the rising cost of new Construction Equipment.

From the above points, we can get the tone of the market to be more inclining towards the demand side and hence, the volume in the pre-owned Construction Equipment market is expected to grow steadily in the year 2022. We are expecting double-digit growth in the volumes of pre-owned construction equipment in the coming year.

For any queries relating to pre-owned construction equipment then please visit: samil.in/ and call us: 18001024141.