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.

→ India built 5,313 km of highways in FY26, surpassing its 4,640 km target, with Rs 2,44,362 crore in capex.
→ Union Budget FY27 allocated capex of Rs 15.48 lakh crore (US$ 172 billion) for infrastructure.
→ The National Capital Goods Policy (2016) targets doubling production and raising manufacturing share to 20% by 2025.
→ The Ministry of Heavy Industries launched Phase-II of the Capital Goods Competitiveness Scheme (Rs 1,207 crore outlay).
→ The capital goods sector recorded 8.1% YoY growth, reflecting improved investment activity.
→ An Urban Infrastructure Development Fund was established to expand bankable infrastructure projects in Tier 2/3 cities.

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

See How These Companies Compare on Cost

The numbers above set the stage. Our Report translates it into a company-by-company cost benchmark — down to the category — so you can see exactly where a business sits against its peers.

Explore the Agricultural, Commercial & Construction Vehicles Report