Tata Hitachi poised for 10-12% YoY growth in FY24
The company has already clocked a robust 10% year-over-year growth so far this year and expects to end FY24 with a growth rate of around 10-12%.
Tata Hitachi, a joint venture between Indian auto giant Tata Motors and Japan's Hitachi Construction Machinery (HCM), is poised for a double-digit revenue increase in the current fiscal year ending March 2024, on the back of strong demand from the construction equipment market.
Sandeep Singh, Managing Director of Tata Hitachi, informed Autocar Professional that the company has already clocked a robust 10% year-over-year growth so far this year and expects to end FY24 with a growth rate of around 10-12%. This upbeat outlook is in line with broader industry estimates, underscoring Tata Hitachi's strong market position and strategic focus on key growth drivers.
Singh attributed the company's performance to a sustained demand for hydraulic excavators, its core product segment, where Tata Hitachi holds a leading position in India. The country's ongoing infrastructure push, fuelled by government initiatives and a buoyant mining sector, continues to provide fertile ground for heavy machinery players like the company.
Tata Hitachi and Hitachi Construction Machinery's (HCM) partnership commenced in 1984 and is today one of the longest-standing JVs in the industry. The company has a manufacturing presence in Dharwad and Kharagpur and over 275 customer-facing touchpoints spread across the country.
Set up in 1961 as the construction equipment business unit of Tata Engineering and Locomotive Company (TELCO), today the company boasts a diverse portfolio of mini excavators, construction excavators, mining excavators, backhoe loaders, wheel loaders, and dump trucks, apart from a wide range of attachments, parts, and expert service solutions.
"We represent all segments in India including roads, ports, mining, irrigation, etc. We have also gone into wheeled equipment," Singh added before continuing that over a period of time, he believes that 20–25% of his company's sales will come from wheeled equipment. "We are getting into this segment in a big way," he continued.
The overall construction equipment industry, on the other hand, which offers a broader range of equipment, is likely to close at around 15–18% by FY24, the company's top executive said.
In line with this, Tata Hitachi claims to have displayed technologically advanced futuristic electric machines at the recently concluded Excon 2023 event held in Bengaluru, which included the ZAXIS 55U-6EB (electric battery) and India’s first indigenously developed electric concept mini excavator.
Also on display were ZAXIS 140H ULTRA, EX130 PRIME, and EX70 PRIME with AC cabin; SHINRAI PRO 49HP and SHINRAI POWER-4 four-wheel drive backhoe loaders; the country’s only hydrostatic wheel loader, TL340H PRIME; 5-tonne class wheel loader, ZW225; and other EX Series and ZAXIS Series range of hydraulic excavators. Tata Hitachi’s support solutions on display included a range of attachments, genuine spare parts, and an array of service offerings.
Need for licenced operators
As the interaction shifts towards some of the challenges, Singh, among many key areas, also points to the lack of licenced equipment operators. In the construction equipment world, unlike mining, a glaring gap exists: the absence of operator licencing. While skilled operators are crucial, many customers at times hire untrained individuals. This poses a significant safety risk to both the equipment and people. Recognising this, OEMs, including Tata Hitachi, have been proactively urging the government to implement mandatory operator licencing.
He highlighted that , as responsible manufacturers, they are fully prepared to contribute to this initiative. "We already provide training for our key account customers and stand ready to expand these efforts across the industry," he added.
According to Singh, the industry has already taken up the issue multiple times with the government and hopes that it may get addressed sooner rather than later. He noted that the absence of regulations isn't due to government inaction but rather a technicality: excavators don't quite fit existing categories like the Motor Vehicle Act. Identifying the appropriate ministry and crafting suitable regulations takes time, but the government is actively working on a solution, Singh concluded.
A behind the scenes look at how the company conducts crash tests internally and how safety aspects are incorporated righ...
Through the Solar2EV Project for Social Justice, the governments hope to register 2 lakh electric vehicles in Maharashtr...
The production-spec Tesla Roadster is set to be unveiled later this year, with initial deliveries scheduled to begin in ...