CNH Industrial, the NYSE-listed parent of CASE Construction Equipment, wants to position India as a major manufacturing hub for farm equipment and components.
19 Feb 2025 | 4705 Views | By Shahkar Abidi
CASE Construction Equipment, a subsidiary of CNH Industrial Group—a publicly traded entity on the New York Stock Exchange—is setting its sights on India as more than just a manufacturing base. The company envisions India as a key global hub, not only for exporting construction machinery but also for supplying critical ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
CASE Construction Equipment, a subsidiary of CNH Industrial Group—a publicly traded entity on the New York Stock Exchange—is setting its sights on India as more than just a manufacturing base. The company envisions India as a key global hub, not only for exporting construction machinery but also for supplying critical components to its worldwide operations.
Speaking on the sidelines of the Bharat Construction Equipment Expo 2025, Emre Karazli, Vice-President of the Construction Segment for CNH APAC, emphasised India’s evolving role within the company’s supply chain. “India’s importance is not only for the domestic Indian market,” Karazli stated. “With all the manufacturing capability we have here, India is becoming much more important as a supply base.” CASE’s India-produced machines—including backhoe loaders, skid-steer loaders, excavators, and compactors—are now exported to over 100 countries.
A Two-Pronged Approach
CASE’s strategy for India is multi-faceted, involving both end-to-end component production and value-added sub-assembly processes. Some components are fully manufactured in India and shipped to CNH facilities worldwide, while others are sourced from local suppliers, refined through advanced fabrication processes, and then exported to various parts of the world.
This dual approach not only enhances cost efficiencies, but also ensures that India remains aligned with CNH’s global quality standards. A key driver of this growth has been the company’s Pithampur plant— its second-largest production facility after North America.
Satendra Tiwari, Executive Director of Operations, CASE Construction Equipment, noted that India’s fabrication costs are now nearly on par with those of China, thanks in part to the widely adopted “China Plus One” strategy—a supply chain diversification movement that many global manufacturers have embraced. “India has become a competitive hub for fabrication, with costs close to those in China,” Tiwari explained.
Yet, despite India’s growing manufacturing capabilities, certain high-tech components, such as hydraulic pumps and proprietary technologies, still need to be sourced from countries such as South Korea and Japan. However, localised manufacturing initiatives are steadily reducing this dependence. “They (suppliers) are bringing those technologies and are setting up manufacturing,” Tiwari added. “So, that makes our supply chain for the domestic market very competitive.”
To further localise the supply chain, the company is incentivising global suppliers to establish operations in India. By offering long-term volume commitments and a clear growth roadmap, CASE has encouraged component manufacturers to deepen their investments in the country. Many suppliers that initially catered exclusively to CASE, have since expanded to supply multiple OEMs across global markets.
India’s significance within the Asia-Pacific (APAC) construction equipment market is evident in the numbers. The country now accounts for roughly 10% of CNH’s total regional sales, with the domestic market contributing around 3,000 units annually to the company’s global total of 40,000. In addition, India exported around 5,000 machines last year.
For CASE, the APAC region—which includes India, Southeast Asia, Australia, and New Zealand—has been a study in contrasts. While Australia and New Zealand saw a sharp 25% market contraction in 2024, and Southeast Asia remained stable, India emerged as a bright spot. “I would say India was the most encouraging one among those with the growth trend,” Karazli observed.
The global construction equipment industry has undergone significant shifts since the pandemic. Initially, demand surged due to government stimulus programs, although supply chain bottlenecks tempered overall growth. Now, as stimulus measures recede, the market is stabilising. Looking ahead, Australia and New Zealand are expected to see a modest recovery in 2025, while Southeast Asia is projected to experience gradual growth, particularly in Malaysia, Indonesia, Thailand, and Taiwan.
In India, the transition to Stage V emission norms has introduced cost-related challenges. However, with national elections behind us, and infrastructure investment remaining a government priority, the outlook for India’s construction equipment market remains positive. “I am expecting the market trend (in CY2025) to still be positive in India as well,” Karazli stated.
Long-term Growth Potential
Looking beyond 2025, CASE Construction Equipment sees significant long-term potential in India’s infrastructure sector. The country’s development agenda presents opportunities for sustained growth. “I’m very, very positive with the growth trend and momentum we have in India, because I believe India still deserves lots of investment in infrastructure,” Karazli remarked.
He pointed out that discussions with government authorities reaffirm the country’s focus on infrastructure development. Additionally, the competitive landscape in India has evolved considerably over the past decade, with both domestic and international players increasing their investments. “When we see the number of players in India's domestic market compared to ten years ago, we see that not only domestic players but also more foreign players are coming in and investing in India,” he added.
Investment in India
India’s growing importance within CASE’s global operations is backed by substantial financial commitments. Over the past five-to-six-years, the company has invested more than Rs 1,000 crore in its Indian operations, with a significant portion directed toward expanding its Pithampur plant.
Shalabh Chaturvedi, Managing Director for India and SAARC at CASE Construction Equipment, emphasised that the company has undertaken major expansions in India’s industrial footprint, spanning its facilities in Pithampur, Greater Noida, and Pune. “We will continue at the same momentum,” Chaturvedi noted.
The company’s roadmap includes adding new production lines, maximising capacity at existing plants, and increasing local sourcing to reduce import dependency. Brownfield expansions—enhancements to existing facilities rather than new constructions—are also in progress to optimise output.
India R&D Hub
Beyond manufacturing, India is playing an increasingly vital role in CASE’s global research and development efforts. CNH has significantly expanded its R&D footprint in the country, positioning it as a key contributor to global product innovation. At the heart of this initiative is the CNH Technology Centre in Delhi, where over 700 engineers are engaged in developing solutions for the agriculture and construction industries worldwide. “Young, smart, talented engineers in India are developing products for North America, for Latin America, for Asia-Pacific, for Africa and for European countries.
India is the best and the major R&D centre we have today,” Karazli affirmed. As CASE Construction Equipment deepens its presence in India, the country is positioning itself as a formidable player in the global construction equipment market. While challenges remain, from emission norms to continued localisation of high-tech components, the broader trajectory suggests that India will continue to gain prominence as a global hub for both machinery and innovation. As the country scales its infrastructure ambitions, CASE is committed to making India a key node in its global supply chain.