Tata Hitachi, a leading player in the construction equipment industry, has voiced concerns about the rising influx of Chinese imports, which is limiting the growth of domestic companies despite favorable market conditions in India. The company is urging the government to take action to support businesses committed to the ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives by addressing what it considers unfair competition from Chinese imports.
Sandeep Singh, Managing Director of Tata Hitachi, highlighted that the market share of Chinese excavators in India has surged to 20-22%, a significant increase from just 10% five years ago. He raised these concerns during the CII-organized IMME and Global Mining Summit 2024, noting that this trend is at odds with India’s push for self-reliance and local manufacturing.
“The penetration of Chinese excavators in the Indian market has grown rapidly, reaching 20-22%, which is a worrying figure. Five years ago, it was less than half of that,” Singh said. India’s construction equipment sector, valued at approximately USD 9-10 billion, is growing at 10-15% due to the government’s focus on infrastructure and mining.
However, domestic companies like Tata Hitachi face growth limitations of 5-10%, largely due to the increasing availability of cheaper Chinese imports. Singh added that Chinese companies have ramped up their presence in India in 2024, driven by excess stock in their own market due to economic slowdowns.
Despite both Indian and Chinese manufacturers facing the same 7.5% import duty, the influx of cheaper Chinese products has posed significant challenges for Indian firms. Shantanu Roy, Chairman and Managing Director of BEML, also emphasized the difficulties in competing with Chinese companies that benefit from lower costs and operate under the guise of being local companies in India.
Singh reiterated Tata Hitachi’s dedication to the Indian market, underscoring the company’s long-term investments and commitment to localizing components. He called for government intervention to introduce protective measures, noting that Tata Hitachi has already lost 5% of its market share over the past five years.
Tata Hitachi currently holds a 23% share in the overall excavator market and 25% in the mining excavator segment. The company has invested heavily in increasing capacity, but its main plant in Kharagpur is only operating at 70% utilization.
To address the challenge posed by cheap imports, Tata Hitachi is focusing on producing higher-capacity machines and advancing its technology, rather than competing on price. Singh also hinted that future investments might hinge on government efforts to safeguard domestic manufacturers.
Tata Hitachi Construction Machinery Company Pvt. Ltd. is a prominent Indian manufacturer of construction equipment, established as a joint venture between Tata Motors and Hitachi Construction Machinery of Japan.
Known for its range of high-quality excavators, loaders, and dump trucks, Tata Hitachi serves industries including construction, mining, and infrastructure development. The company combines Tata’s expertise in the Indian market with Hitachi’s advanced engineering and technology, delivering equipment that is durable, efficient, and tailored to the demanding needs of various sectors.
With manufacturing facilities in Kharagpur and Dharwad, Tata Hitachi is committed to producing equipment that meets international standards while addressing local industry needs. The company places a strong emphasis on sustainability and fuel efficiency, continually innovating to reduce environmental impact. Through its robust distribution and service network, Tata Hitachi ensures reliable support and accessibility, making it a trusted name in India’s construction machinery sector.
