Escorts’ Construction Equipment Segment (ECE) reported total sales of 386 machines in February 2022, down 14 percent as against 449 machines sold in the same month last year.
The company said the CE equipment industry is currently facing severe short-term challenges on account of steep price increase led by unprecedented inflationary pressures and emission norm changes coupled with low equipment rental rates. This trio of factors has impacted retails.
"However, given the Government thrust on infrastructure projects in the coming years and stabilisation of increased pricing in the market, we expect demand to start improving for construction equipment in the coming year" the company said.
Escorts has a presence across the sectors such as agri-machinery, construction & material handling equipment and railway equipment. Tractors, construction equipment and railways account for 82 percent , 11 percent and 7 percent respectively of the company’s businesses. Of the segments in which it operates, Escorts believes that the construction equipment industry will witness the fastest growth in coming quarters on account of expected pickup in economic activity and infrastructure activities including roads, mining and construction.