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India’s largest construction equipment maker, JCB, is bracing for the impact of new US tariffs on its exports, but remains confident of weathering the short-term disruption by diversifying markets, leveraging UK-India free trade agreement, and riding on its new CEV V-compliant machines.
“The US is a big market. Last year, we exported almost 10,000 machines from India as JCB, and the industry as a whole shipped 12,000–13,000 units. The tariff will have an impact, but I believe these are short-term challenges,” said Deepak Shetty, CEO and Managing Director, JCB India.
The US has imposed an additional 25% tariff on Indian exports including the automotive industry including construction equipment categories, though the exact impact depends on product-specific HSN codes. Shetty cautioned against “reacting in a negative way” and noted that JCB’s global footprint with exports to 135 countries and manufacturing in India, the UK, Brazil and the US, offers flexibility to re-route supplies and tap alternate markets.
JCB sees the UK free trade agreement as a lever to improve product competitiveness in Europe. “The market is there; our machines have a very good listing. The FTA will make us more competitive on price,” Shetty said.
Beyond developed markets, JCB is ramping up sales in South Asia and Africa, where demand is rebounding. Sales in Nepal are expected to rise from 250 units last year to 600–700 in 2025, while Sri Lanka should see 500–600 units. In Africa, JCB has tripled business in three years, with strong growth expected in Ethiopia, Kenya, Tanzania, Uganda, and Angola.
After over 20% growth, India’s construction equipment industry grew just 3% last year, hit by election-related project slowdowns. This year’s (2025-26) performance has been further tempered by the January transition to CEV V emission norms, which led to pre-buying and inventory stockpiling.
In July, the industry saw a 33% on-year decline year to just 3,509 units, marking the steepest decline among all vehicle categories tracked by FADA.
JCB India also saw a decline from 2,293 units sold in July 2024 to 1,731 units sold in July 2025 in the retail market. However, the company’s market share increased to nearly 50% in July.
Shetty expects the sector to be “flat, plus or minus 3%,” but believes the second half will be buoyed by a normal monsoon, rural demand, and fresh infrastructure spending. “Last year was our best in 45 years. This year could be our second-best,” he said.
Betting on Stage V Machines
While rivals pushed old stock, JCB launched its Stage V range, claiming 14–15% better fuel efficiency, lower maintenance costs, and a total cost of ownership below Stage IV models. The company has already sold 20,000 units in the first six months of 2025.
Despite the near-term tariff turbulence, JCB projects a 10–12% annual growth rate for the industry over the next five years, underpinned by India’s infrastructure push. Shetty expects India to overtake China by 2030 to become the world’s second-largest construction equipment market, selling around 250,000 machines annually.
“Government projects from the National Infrastructure Pipeline to housing schemes will drive demand. Before every house is built, you have to flatten the ground and dig the foundation. That’s construction equipment,” Shetty said.
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