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Tata Hitachi Flags Concern Over Chinese Imports, Seeks Govt Support

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By Rediff Money Desk, Kolkata   Oct 23, 2024 20:17

Tata Hitachi expresses concern over rising Chinese imports in the Indian construction equipment market, urging the government to protect domestic companies from 'unfair' competition.
Tata Hitachi Flags Concern Over Chinese Imports, Seeks Govt Support
Photograph: Parth Sanyal/Reuters
Kolkata, Oct 23 (PTI) Construction equipment major Tata Hitachi on Wednesday expressed concerns over the growing penetration of Chinese imports in the Indian market, capping the growth trajectory of domestic companies despite healthy market conditions.

The company urged the government to take measures to encourage companies that have invested heavily in 'Atmanirbhar Bharat' and 'Make in India' initiatives, by countering "unfair" competition from Chinese imports.

Tata Hitachi Managing Director Sandeep Singh stated that the market share of Chinese excavators in India has surged to 20-22 per cent, a concerning trend given the country's focus on self-reliance and domestic manufacturing.


"The Chinese penetration in the excavators segment has intensified in recent months, reaching about 20-22 per cent. This is very high. Five years back, it was not even 10 per cent," Singh told reporters on the sidelines of the CII-organised IMME and Global Mining Summit 2024.


The construction equipment business in India is valued at some USD 9-10 billion and growing at about 10-15 per cent due to infrastructure and mining impetus from the government.


But, the growth of Indian companies gets capped to 5-10 per cent due to cheap imports.


Chinese companies have allegedly intensified dumping in the Indian market since early this year to clear their huge stockpiles amid a slowdown in their country's economy.


The import duty for both Chinese and Indian companies with high localisation levels remains the same at 7.5 per cent, an official said.


BEML Chairman and Managing Director Shantanu Roy also highlighted the challenges faced by Indian companies due to the influx of Chinese equipment, which they find difficult to match without sufficient localisation.


"Some Chinese companies are registered here as Indian companies. But, if we want Atmanirbhar Bharat, it needs to be at the component level," Roy said.


BEML had to withdraw from the construction equipment business about 5 years ago due to the import onslaught.


Singh emphasised Tata Hitachi's commitment to the Indian market, highlighting its long-term presence, investments, and efforts to localise components.


Singh called for government intervention to address the trend and create some entry barriers to protect Indian companies' interests.


"We have lost five per cent market share in 5 years," Singh added.


Tata Hitachi currently holds a market share of 23 per cent in overall excavator market and 25 per cent in mining excavators.


Asked if future investments would depend on government measures to protect Indian companies' interests, Singh said that the company has already invested heavily in capacity, which remains underutilised.


The current capacity utilization at Tata Hitachi's main plant in Kharagpur is 70 per cent.


To cope with the situation, the construction equipment major is focusing on higher capacity equipment and technological advancements rather than engaging in price wars.
Source: PTI
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