Players have been focusing on exports due to insulate themselves from the cyclic domestic market demand. ITL
(International Tractors Ltd.) occupies major proportion in exports pie at 24%, followed by John Deere at 21%,
TAFE by 17%, Mahindra by 13% and New Holland India by 12%.

Off-highway vehicles

Volume sales for the construction equipment (CE) industry surged from fiscal 2017 onwards because of an
upsurge in the renting of backhoes and excavators. Typically, ~85% of purchased backhoes are given out on rent,
while this figure stands at ~50% for excavators.

An uptick in execution of road projects has also been a key contributor to growth in the EME industry, with the
National Highways Authority of India (NHAI) construction touching an all-time high in fiscal 2020. By the time
the nationwide lockdown was announced, highway construction under the NHAI in fiscal 2020 was already at
3,979 km, 18% higher than the 3,380 km constructed in fiscal 2019. A shift in focus to swifter execution has paid
off for NHAI, recording the highest-ever construction in the past decade, at 10.9 km per day, in line with CRISIL
Research’s estimate of 10-11 km per day. The roads sector is a major contributor to total EME volumes in India.

Decline in demand in FY20 is reflected in loans disbursed by equipment finance companies. 85-90% of the
equipment are financed in the industry with institutional and cash purchase accounting for the rest.

Off-highway sales logged growth till fiscal 2019

100
80 2 a
60
£ 53
oa 40 36
©
8
g 20
3
Ee oO
FY15 FY16 FY17 FY18 FY19 FY20
= Backhoe Loaders = Excavator ™ Wheeled Loader = Compaction equipment
= Motor graders = Skid Steer loaders m Bull Dozers Total

Source: CRISIL Research
KEY TRENDS IN AUTOMOBILE SECTOR

Evolution of electric vehicles in India

Expansion on phase I; April 19 to March 22;

Rs. 10,000 Gr outlay ptanned for demand
Incentives, charging infrastructure &
romeon e Ea
| 2015 | To incentivize production and promotion of eoo-
e friendly vehicles; April 15 ~ March 19; Rs 895

Cr planned outiay; Utiization of the scheme was
about 55%

Ew 6 To achieve 6-7 million sales of hybrid & EVs
y-0-y from 2020 onwards
e ‘Scheme proposed incentives up to 20% of ex tactory
prices; Was withdrawn in March 2012

109
