Dimitrov Krishnan, MD and Head Region India, Volvo Construction Equipment
India’s construction equipment industry is navigating a period of muted growth but investments in railways, urban infrastructure, mining and quarrying could revive growth with the sector potentially returning to its traditional 10-15 per cent expansion if project execution gathers pace. Dimitrov Krishnan, MD and Head Region India, Volvo Construction Equipment, told businessline.
Volvo CE, a leading international company specialising in the development, manufacturing and marketing of construction equipment, has been in India for nearly three decades.
How would you describe the current state of India’s construction equipment industry?
The industry has been subdued over the last two years despite significant infrastructure allocations by the Centre. The previous budget allocated around ₹11 lakh crore for infrastructure, while the current budget has provided ₹12.2 lakh crore. However, actual spending and project awards, particularly in the road sector, have been relatively slow. The industry declined by around 3-4 per cent in 2025-26, and we expect growth of less than 5 per cent in the current fiscal. For an industry accustomed to 10-15 per cent growth, 5 per cent is not a significant expansion. If announced projects are implemented and allocations are translated into actual spending, the industry should be capable of growing by 10-15 per cent.
Which sectors are likely to drive demand going forward?
Mining is currently supporting demand, particularly for larger equipment, while smaller machines and road construction equipment remain under pressure. The proposed high-speed rail corridors and completion of the dedicated freight corridors could generate investments of around ₹16 lakh crore over the next seven to eight years. Urban infrastructure, real estate, quarrying and construction activity in expanding cities and towns could also support demand. State-level infrastructure projects, including those supported by multilateral institutions could provide further momentum.
How is Volvo CE positioning itself in India?
Volvo CE has been in India for nearly 28 years and manufactures excavators, wheel loaders and compaction equipment at its Bengaluru facility. Our strategy is increasingly focused on India-centric products and higher localisation. We also have a strong presence in mining, where total cost of ownership is a critical consideration for customers. Another area of growth is equipment-as-a-service.
How fast is electric construction equipment gaining ground?
The electric construction equipment market is growing, helped by rising diesel costs and improving economics for electric machines. Government policies, including the requirement for greater electrification in mining fleets, are also supporting adoption. Electric wheel loaders and dump trucks are seeing the strongest traction because charging is relatively easier. While electric equipment accounts for only around 1 per cent of the overall construction equipment industry of approximately 140,000 units, penetration is much higher in certain product categories.
What are Volvo CE’s growth plans for India?
Our focus over the next three to five years will be on expanding our localised product portfolio. India is already among Volvo CE’s top 10 markets globally by volume. Around 90 per cent of our production in India is sold domestically, while about 10 per cent is exported, mainly to Latin America, the Middle East and Southeast Asia. India is also emerging as an important manufacturing base.
Published on September 3, 2026
