Tariffs slash JCB India’s exports to USA by 80%; Industry sees 10% de-growth, says CEO

US tariff barriers have hit JCB India’s exports to USA hard plunging from 10,000 machines last year to barely 1,500–2,000 this year, even as the domestic construction equipment industry reels under a 10% de-growth, JCB India MD & CEO Deepak Shetty told CNBC-TV18.

After two consecutive years of over 20% growth and a record 2024, the construction equipment industry has hit a slowdown, according to Deepak Shetty, MD & CEO, JCB India. Speaking to CNBC-TV18, Shetty described the current year as a “bit of a dampener,” marked by a 10% de-growth in the domestic market.

Shetty attributed the decline to a prolonged monsoon and the transition to Stage V emission norms, which led many companies to clear older inventory before placing fresh orders.

A more structural challenge, he noted, is that several state governments have delayed payments to contractors, directly impacting project execution and equipment demand. “This has been a significant drag on the domestic market,” he said.

Despite this, JCB’s brand strength has only grown. “Earlier we used to say one out of two machines sold in India is a JCB. Today, more than one out of two machines is a JCB,” Shetty said, adding that the company’s expanding product range has deepened its domestic reach.

JCB’s export business, one of its strongest growth engines, has been hit sharply by U.S. tariff barriers.
“Last year, we exported 10,000 machines to the U.S.. This year, it’s down to 1,500–2,000,” Shetty said.

However, the company has been able to offset the U.S. shock by diversifying aggressively into other regions. JCB has expanded exports to Europe, doubled shipments in East Africa, and increased volumes across South Asia, Southeast Asia, and the Middle East.

From 14,500 machines exported last year, Shetty expects JCB to still close this year at around 11,500 units, despite the tariff setback.

Shetty is upbeat about India’s Free Trade Agreements (FTAs) with the UK, Australia, UAE and potential progress with the United States, the world’s largest construction equipment market.
“These FTAs open significant opportunities for us. We are already exporting to all these markets, and tariff relief will only strengthen India as a global export base,” he said.

JCB is expanding beyond its traditional customer base.
“This year, we booked around 750 machines for the Army and Air Force. We also secured fresh orders from the Border Roads Organisation,” Shetty said, signalling strong traction in the defence sector.

Railways is another emerging segment. With the railway capex now almost on par with road capex, JCB is seeing “new lines, new projects and rising demand.”

The surge in airport construction is also helping the company. JCB machines are deployed at major sites including Jewar Airport and the Navi Mumbai International Airport.

Despite a challenging year, Shetty remains optimistic. “I feel very positive for next year,” he said, citing improved export pathways, defence traction, airport and railway expansion, and the expectation of a renewed infrastructure push from the government.