Page 33 - Construction_Opportunities_Sep_2026

COVER STORY
INTERACTION

What is your assessment of the market potential for your key Rentals are growing. What is your strategy to tap opportunities
product categories in India, and how do you foresee demand and what is your outlook for the rentals market?
trends evolving in 2027 and beyond? The growth of rentals reflects a broader shift from owning
India’s construction equipment market has strong fundamentals equipment to accessing outcomes.
on a long-term basis, with consolidated industry volumes at At Volvo CE, we see strong potential in Equipment-as-a-Service
1.35-1.4 lakh units per annum. The demand drivers for the (EaaS) models, which can give customers greater flexibility while
industry would continue to be faster project completion, reducing the upfront investment and complexity of equipment
enhanced mechanisation and productivity. Over the next ownership.
five years and thereafter, it is expected that demand will Our focus is on developing solutions that go beyond the
remain strong across excavators in the mid-size segment, road machine bringing together equipment, uptime, maintenance,
construction equipment, mining, and other heavy equipment, digital connectivity and lifecycle support into a more
with the change not being even across segments or regions. predictable, outcome-based offering.
Road widening and upgrades, state infrastructure, mining, and As India’s infrastructure ecosystem evolves, we see EaaS and
urbanisation are likely to keep fuelling equipment demand. other flexible equipment models becoming increasingly
For Volvo CE, the opportunity is particularly strong in segments relevant, particularly for customers looking for productivity, cost
where customers are increasingly evaluating equipment on efficiency and operational flexibility.
productivity, fuel efficiency, uptime and lifecycle economics,
rather than only the initial purchase price. What is your outlook for the construction equipment industry
and your company going forward?
How is your organisation embedding sustainability, cleaner The construction industry is becoming more technology-
technologies and environmentally responsible practices into oriented.
its products, operations and long-term strategy? India’s construction infrastructure is remaining a primary growth
Sustainability has always been a key focus area for us, and it will driver while shortening of project time frames is driving a need
continue to drive Volvo CE’s growth in the future. There has been for higher mechanisation and productivity.
a constant improvement process within the company related India has become the third-largest market for construction
to products’ fuel consumption and emissions, electrification, equipment and we believe it has the potential to become the
and developing more sustainable ways of working in general. biggest market globally in the nearest time.
Sustainability is considered throughout the value chain, from Volvo CE will focus on expanding in its main sectors, increasing
production to operations. localisation, developing products specific to the Indian market,
Technological shifts take place according to market demands. and providing connectivity and eco-friendliness.
In India, practical application of cleaner technologies will be The global engineering can be leveraged to improve
implemented while focusing on energy efficiency of the current comprehending the future needs of Indian customers and
equipment portfolio. projects.

SEPTEMBER 2026|CONSTRUCTION OPPORTUNITIES 33