Sector Snapshot · Agricultural, Commercial & Construction Vehicles

Building the Machines That Build India

A fast-read primer on India's construction and heavy vehicle equipment market — the backdrop against which we benchmark every company's cost structure in this category.

US$7.91 bn
Construction equipment market size, FY25
8.3%
CAGR to FY30
1,40,191
Units sold in FY25 (+3% YoY)
1,65,097
Units expected to be sold by FY28
100%
FDI allowed under automatic route

Volumes and Market Size Both Trending Up

Unit sales are climbing steadily, and the government's own infrastructure ambitions point to more of the same.

Construction Equipment Sales (units)

FY24 → FY25 → FY28 forecast

1,35,650
FY24
1,40,191
FY25
1,65,097
FY28F

Construction Equipment Market Size (US$ bn)

FY25 → FY30 forecast · 8.3% CAGR

$7.91bn
FY25
$11.78bn
FY30F

What's Pushing the Sector Forward

Infrastructure ambition, policy liberalisation, and rising capex are the three forces at work.

Growing Demand
  • Unit sales up 3% YoY in FY25
  • Government's Vision Plan 2030 targets a manufacturing & export hub for construction equipment
Policy Support
  • De-licensed sector; 100% FDI under automatic route
  • National Capital Goods Policy targets 20% manufacturing share by 2025 (from 12% in 2016)
Investment
  • Union Budget FY27 capex of Rs 15.48 lakh crore (US$ 172 bn)
  • Urban Infrastructure Development Fund to widen bankable projects in Tier 2/3 cities

Recent Developments

A sample of the industry-wide and policy moves shaping the sector through early 2026.

Companies We Benchmark in This Sector

Listed Indian Agricultural, Commercial & Construction Vehicles companies in tDoBe's cost-benchmarking coverage.

Tata Motors
Ashok Leyland
Escorts Kubota
BEML Ltd
Action Construction Equipment
Ajax Engineering
SML Isuzu (Mahindra)
VST Tillers Tractors
TIL
Atul Auto
Indo Farm Equipment
Jinkushal Industries
Brady & Morris
Gurunanak Agri Industries
Soomax Resources

The Cost Benchmark — What We Actually FoundtDoBe Think Report

The market facts above are public background. What follows is tDoBe's own work: every "Other Expenses" line from these companies' own financial records, read by hand and sorted into one clear set of categories — not a keyword search, not each company's own way of reporting it.

10.0%
tDoBe Average — Other Expenses as % of net revenue
3.2×
Gap between the highest and lowest company
12
Cost categories, sorted by meaning
1.9%
Biggest single category — Miscellaneous & Others
FY24/25
Latest available financial records

Where Companies Land — Total Other Expenses

Each mark is one company's total Other Expenses as % of net revenue. No company is named here.

10.0%
0%5%10%15%20%

tDoBe Average by Cost Category

Ranked from biggest to smallest.

Miscellaneous & Others
1.9%
Freight, Distribution & Logistics
1.1%
Repairs & Maintenance
0.8%
Travel & Conveyance
0.7%
Advertising & Sales Promotion
0.5%
Total Other Expenses
10.0%
Where the Cost Really Sits

No category dominates heavily here — Miscellaneous & Others tops out at under 2% of revenue, with Freight, Repairs & Maintenance, Travel and Advertising all in a similar, modest range. This is one of the leaner Other Expenses profiles we've benchmarked.

Why the Range Is So Wide

Tractors, trucks, cranes and construction equipment all sit in this one sector, and dealer-network and after-sales-service intensity differs a lot between them — that's most of the 3.2x spread.

Why the Comparison Is Fair

We use each company's own standalone financial records — not group numbers, not each company's own labels. Every cost line is read by hand and placed into one common set of categories, so every company is compared the same way.

See Where Your Own Company Stands

This is the free, sector-wide view. It tells you where Agricultural, Commercial & Construction Vehicles stands as a whole — not where your own company stands against it, category by category, in rupees.

Report
$999
Your company, named, benchmarked against the sector. Every category broken out and explained. Delivered in about a week.
Consulting
$4,999
7 working days. We work straight from your own records, on the categories you want answered first.

A below-average number is a reason to call too — the benchmark keeps improving as we go.

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Compiled from public government and industry sources, February 2026 update · Figures rounded · tDoBe sector snapshot, for informational purposes · Cost Benchmark findings compiled from companies' own financial records, FY2024/25.