The Indian Motor Grader Market is expected to rise 24% over the next five years (2021) on the back of growing Road building activities and future investment in the infrastructure projects said a latest report of Off-Highway Research. In 2016, the sales of motor graders jumped 54% in the country.
The recent growth in the Motor Grader market and the optimistic forecast for next five years is based on the rising infrastructure investment and a recovery in mining activities in India says the report titled ‘Indian Equipment Analysis: Motor Graders’.
“Sales of motor graders follow very closely the trends of expenditure on the construction of new roads and the maintenance of the road network, so demand for machines will largely depend on the speed at which existing and future road projects are executed. The backlog of pending road construction work in the country as well as the government’s ambitious infrastructure development plans, offer huge potential for growth in the motor grader demand,” said the report.
In the Budget 2017-18, the Indian government has allocated Rs. 3.96 Lakh Crore (18% of total budget cost) to give the much-needed push to the country’s infrastructure sector, increase from Rs 2.21 lakh crore (In budget 2016-17).
Out of this Rs. 3.96 lakh crore, the Rs. 2.41 lakh crore alone allocated for transportation sector, including Railways, Roads and Ports sectors. For the highways, it allocated Rs. 64,900 crore investments up from Rs. 57,976 crore in 2016-17. Besides, the government will develop and expand 2,000 km of coastal roads to facilitate better connectivity with ports and remote villages.
In addition, the central government has allocated Rs. 19,000 crore for Pradhan Mantri Gram Sadak Yojana (PMGSY) in the next fiscal to complete the current target under PMGSY by 2019, and with the contribution of the States, around Rs. 27,000 crore will be spent on PMGSY in 2017-18.
In the last two years, the government has successfully increased the pace of the road construction in the country and it is expected to continue, as the government announced a huge investment for road development. It is also closely monitoring the pace of the road construction. Recently, Road Transport, Highway and Shipping Minister Mr. Nitin Gadkari said, the government sets a target to build 42 km of roads per day.
Ministry of Road Transport and Highways (MoRTH) has aimed to award works worth Rs 7 lakh crore in the next five years to develop National Highways of around 50,000 km.
“Future demand for bigger machines will be largely determined by the levels of activity in the mining sector, which is likely to grow in the coming years,” the report said.
The manufacturers of Motor Graders like CAT, Komatsu, Tata Hitachi, Terex, Volvo, Hyundai, Action Construction Equipment (ACE), CASE Construction, LIUGONG, SANY, Schwing Stetter, Leeboy, Deere, and others will be benefiting from the road building in India.
Source: Information has been obtained from Off-Highway Research, GoI