Road Construction Sector – Pandemic effect (Now and Future)
Sandeep Mathur, Brand Leader at CASE India, discusses the impact of the COVID-19 pandemic on the construction equipment sector, the government's infrastructure push, and the initiatives undertaken by CASE India to support customers, employees, and communities during challenging times.
Mr. Sandeep Mathur | Brand Leader, CASE India
The COVID-19 pandemic emerged as a global health emergency that affected almost every country following its outbreak in December 2019. The crisis disrupted economies across the world, resulting in a significant slowdown in economic activities.
The nationwide lockdown impacted imports and exports, restricted logistics and transportation activities, and limited business operations to essential services. During the initial phase of the pandemic, rating agencies such as ICRA projected a decline in demand for the construction equipment sector. ICRA’s GDP forecast during the outbreak suggested economic growth of around 2% for the fiscal year.
The lockdown led to the accumulation of infrastructure and construction projects, causing delays in completion schedules and increased project costs. Contractors were also affected due to disruptions in payment cycles. As construction activities came to a halt, construction equipment companies witnessed a decline in equipment rentals and leasing activities.
Labor shortages further intensified the challenges faced by the industry. However, as safety protocols and sanitation measures were implemented at project sites, the sector gradually began witnessing the return of migrant laborers to urban areas.
Infrastructure Push Driving Recovery
The road construction equipment industry is gradually emerging from a stagnant phase. Infrastructure development is expected to play a crucial role in reviving economic growth and supporting industry recovery.
The government has introduced several initiatives to accelerate infrastructure development, including the Bharatmala Pariyojana. Under the program, 322 projects covering approximately 12,413 kilometers of roads were awarded.
Additionally, the Ministry of Road Transport and Highways (MoRTH) set a target of constructing 12,000 kilometers of highways during the financial year while taking measures to reduce the backlog of arbitration cases.
The government also partially released bank guarantees to improve contractor liquidity, while agencies such as the National Highways Authority of India (NHAI) worked toward resolving land acquisition challenges to accelerate project execution.
According to Off-Highway Research, the construction equipment market was expected to decline by 27% to 61,225 units in 2020. However, assuming the pandemic came under control, the market was projected to witness a strong recovery, reaching 76,375 units in 2021, 88,700 units in 2022, and over 100,000 units in 2023.
The continued focus on infrastructure development is expected to generate positive momentum for the construction sector and related industries.
CASE India’s Commitment During the Pandemic
For more than three decades, CASE India has contributed to India's infrastructure growth through technologically advanced construction equipment solutions.
During the lockdown period, the company remained focused on supporting both employees and customers. Employees worked remotely while staying connected through multiple digital platforms to ensure business continuity.
CASE India maintained regular engagement with its dealer network through online training programs and updates on new developments. The company also worked closely with customers by offering loan extensions to reduce financial pressure during the crisis.
Manufacturing facilities operated in shifts to maintain efficiency while ensuring workplace safety through reduced workforce density.
Through its financial services arm, CNH Capital, CASE India introduced attractive financing schemes to support equipment purchases. The company also launched a 48-hour loan approval policy to provide customers with faster access to financing.
CNH Capital further increased capital availability, helping customers make equipment investments even during challenging market conditions.
For fleet owners, CASE India offered maintenance contracts supported by dedicated service personnel to ensure equipment uptime and operational continuity.
The company also maintained sufficient spare parts inventory at key locations and continued providing service support through its dealer network while adhering to all necessary safety protocols.
Supporting Communities During Difficult Times
Despite the pandemic, CASE India continued its efforts to support local communities.
The company donated a Blood Tubing Device and a Reverse Osmosis System for water purification and dialysis treatment to the Chief Civil Surgeon and Resident Doctor of Dhar District Hospital as a tribute to frontline healthcare workers.
This initiative reflected the company's commitment to social responsibility and community welfare during a period of unprecedented challenges.
Looking Ahead
CASE India remains committed to following government safety guidelines and ensuring employee well-being across its operations.
The company continues to stand alongside its customers, providing support, innovative solutions, and reliable service during uncertain times.
While market conditions remain challenging, government initiatives and infrastructure investments are expected to support industry recovery. CASE India remains optimistic about future growth opportunities and is prepared to contribute actively to the revival of the construction equipment sector.
