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JCB Exports Plummet Amid US Tariffs
19 Nov
Summary
- US tariffs caused JCB India's exports to drop significantly.
- The domestic construction equipment industry experienced 10% de-growth.
- JCB is diversifying exports to mitigate US market losses.
JCB India has experienced a drastic decline in exports to the USA, falling from 10,000 machines last year to just 1,500-2,000 units currently, largely due to imposed US tariff barriers. This export shock coincides with a challenging period for the domestic construction equipment sector, which has seen a 10% de-growth this year after two years of strong performance.
Several factors are contributing to the domestic slowdown, including a prolonged monsoon season and the transition to stricter emission norms, which necessitated clearing older inventory. Furthermore, delayed payments by state governments to contractors have significantly impacted project execution and demand for equipment, acting as a considerable drag on the market.
Despite these headwinds, JCB is strategically expanding its global reach by aggressively diversifying into other regions such as Europe, East Africa, South Asia, Southeast Asia, and the Middle East. The company is also seeing growth in the defence and railway sectors, and anticipates a positive outlook for the upcoming year due to expected infrastructure development and improved export pathways.
