Kobelco targets 3% growth in excavator market, launches three new models

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Sri City plant has capacity for 3,500 units; new models target smaller contractors and rental players

By T E Raja Simhan

Updated - October 23, 2026 at 08:20 PM.

Moses Eddy, Director (left), and Jun Hayama, Managing Director, KCEI

Kobelco Construction Equipment India (KCEI) expects India’s hydraulic excavator market to grow around 3 per cent this year, despite a slowdown in National Highways Authority of India (NHAI) project execution, supported by infrastructure spending by State governments on urban development, irrigation and rural roads.

The market for hydraulic excavators, excluding mini excavators, is expected to increase from around 31,000 units last year to 32,000-33,000 units this year, Moses Eddy, Director, KCEI, told businessline.

new variants

Meanwhile, Kobelco on Friday launched three excavator variants in the 19.1-24-tonne category manufactured at its Sri City facility in Andhra Pradesh. The new range targets mining operators, major road contractors, smaller contractors and equipment rental companies, says a statement.

The company is looking to penetrate markets in parts of Jharkhand and Maharashtra, where smaller contractors and rental players seek economical equipment.

Localisation and exports

Kobelco’s Sri City plant has an annual production capacity of 3,500 units and has manufactured more than 20,000 machines for domestic and export markets across over 16 countries. The company has invested around ₹900 crore in the facility since 2011.

Production is currently around 2,800-2,900 units annually, and KCEI expects to reach full capacity in about two years, depending on market acceptance and export demand. Exports account for roughly one-third of its volumes, with the Middle East, Africa and neighbouring countries among its target markets, he said.

Localisation in the new models has increased from 48 per cent to 68 per cent, primarily through the use of a locally sourced Cummins engine instead of the Hino engine used earlier.

KCEI reported turnover of more than ₹2,000 crore last year and expects it to rise to ₹2,400-2,500 crore this year, he said.

Jun Hayama, Managing Director, KCEI, said the launch coincides with the company completing two decades of its presence in India, including manufacturing and engineering operations.

Eddy expects changes in government tender norms and quality standards to improve infrastructure project execution in the coming months. However, geopolitical uncertainties and shipping constraints could affect exports.

On Chinese competition, he said manufacturers from China had expanded overseas sales partly because of excess capacity following the slowdown in the country’s real estate market. T

heir market share in India, which had risen to around 40 per cent, has since declined to about 33-34 per cent, Eddy said.

Published on October 23, 2026

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