New emission norms in construction to increase mature market exports

The new emission standards in the construction industry when implemented will increase exports to more mature markets such as Europe and North America from India.

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

It will harmonise the production from domestic to export in more mature markets. And that will provide an additional opportunity and the price to make more efficiencies, Fabrizio Cepollina, Vice-President, industrial construction segment in Africa, Middle East and Asia Pacific AME, CNH Industrial, told the media.

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

In India, CNH Industrial India is present through the Case IH, New Holland Agriculture, and CASE Construction Equipment brands. It has its production installation in Madhya Pradesh's Pithampur.

He said that the factory caters to 75 international markets spread across the Middle East, Africa, and Asia Pacific region. When the new emission norms (CEV-Stage V/Trem get executed in the construction equipment industry, it will open doors for more mature markets.

He said the company has already spent over $200 million in the business in India in the last decade but did not remark on the new investment CASE construction was looking at to grow in the market further.

The company presently controls a 7% market share in the Backhoe loader segment and strives to double it in the next three years.

Backhoe loaders and excavators, which are the major construction equipment, have a very high demand in developing countries owing to fast-paced urbanisation.

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

Today the company's market share is 7%. The aim is to double this to 12-15% in three years. The company strives to consolidate its second position in a much more solid way.

He said that the company's emphasis is to target the domestic market and then create exports.

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Also read: CNH aims double-digit revenue growth from construction equipment

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