New emission norms in construction to boost exports to mature mkts: Expert

The new emission standards in the construction industry when implemented will boost exports to more mature markets such as Europe and North America from India, according to a top industry executive.

The BS (CEV/Trem) V standards, starting from April 1, 2024, cover a wider range of engines, including those smaller than 8 kW and those larger than 560 kW, and introduce PN (particular number) limits for those engines with rated power between 19 and 560 kW.

Theoretically, we can do (exports) also today, but it's clear that you will harmonise the production from domestic to the export in more mature markets. And that will create an additional opportunity and the cost to make more efficiencies," Fabrizio Cepollina, Vice-President, industrial construction segment in Africa, Middle East and Asia Pacific AME, CNH Industrial said during an interaction on the sidelines of Excon in Bengaluru.

The 5-day 11th edition of the International Construction Equipment and Construction Technology Trade Fair CII EXCON 2021, concluded on Sunday.

CNH Industrial India is present in India through the Case IH, New Holland Agriculture and CASE Construction Equipment brands. It has its production facility in Pithampur near Indore Madhya Pradesh.

He said that the plant caters to 75 international markets spread across the Middle-East, Africa and Asia Pacific region, adding, when the new emission norms (CEV-Stage V/Trem gets implemented in the construction equipment industry it will open doors for more mature markets like Europe and North America.

He said the company has already spent more than USD 200 million in the business in India in the last one decade but did not comment on the new investment CASE construction was looking at to further expand in the market.

The company currently commands 7 per cent market share in the Backhoe loader segment and the aim is to double it in the next three years, he said.

Backhoe loaders and excavators, which are key equipment for any construction, have a very high demand in developing countries owing to fast paced urbanisation.

CASE Construction Equipment during the Excon rolled out an array of products, including a backhoe loader, a vibratory compactor, an excavator and a motor grader in its bid to strengthen its positioning in the domestic construction equipment market.

"Today our market share is 7 per cent. The target is to double this to 12-15 per cent in three years. Our aim is to consolidate our second position in a much more solid way," he stated.

He emphasized that the company's focus is to target the domestic market and then develop the exports further.

Stating that the localisation level in excavators and backhoe loaders currently stands at 90 per cent, Alok Jha, Director sales and marketing for India and SAARC said in India the prime categories of backhoe loaders are compact, 50HP, 75HP and 90HP and the company is present across all these segments.

"Going forward, we would like to consolidate our positions not only with the product, but even with the augmented product.