Shift from volume to value

The Indian infrastructure procurement story is entering a decisive phase. As investments surge, success is no longer defined by scale alone, but by lifecycle value, localisation, energy efficiency, digital uptime, and execution excellence across projects.

Globally, mature markets are recalibrating after years of aggressive expansion. Europe is dealing with cost inflation and sustainability standards, while China’s construction equipment industry remains structurally slow. In contrast, India approaches 2026 with a unique combination of demand visibility, policy consistency, and manufacturing confidence. India is no longer just the world’s fastest-growing market; it’s also one of its most significant, with governmental infrastructure investment reaching ₹11 lakh crore and private capital gradually returning.

Vision 2026, in this context, is neither a slogan nor a policy milestone. It is a working blueprint that guides how machines are created, projects are funded, and asset value is monitored throughout their existence.

From scale to sophistication

Over the past ten years, India has embarked on an enormous infrastructure drive. The nation continues to be the world’s second-largest coal producer, constructs more than 12,000 km of roads per year, and runs more than 900 km of metro rail. Yet, complexity is required for the next stage of growth instead of a rapid increase.

Dimitrov Krishnan , Managing Director of Volvo Construction Equipment India, has witnessed this evolution firsthand. Reflecting on how the market has matured, he notes that the industry’s confidence is no longer speculative, but grounded in execution capability. “The size of events like the Excon 2025, with over 1,700 exhibitors and multiple country pavilions, indicates global confidence in India’s future potential. It functions as a whole ecosystem, bringing together manufacturers, federations, and user industries to showcase the most advanced electric, semi-autonomous, and alternative-fuel technologies.”

India is no longer a derivative market for multinational OEMs. It is becoming a hub for design and validation as well as a growing source of globally relevant products. Volvo CE’s “Build for Bharat” strategy reflects this shift. “In June of last year, we launched the EC210E, a device designed exclusively for this market. It has proven to be a decisive success; even in a slowing market, we have seen our volumes and market share increase, as the product delivers outstanding fuel efficiency,” Krishnan explains.

This focus on fuel economy is not coincidental. Fuel remains the largest operating expense for a procurement manager over a machine’s lifetime. At fleet scale, even small increases in efficiency result in significant savings.

Lifecycle value becomes the new currency

The old procurement strategy of the lowest upfront cost has become increasingly unworkable in a context where delays result in penalties, emissions standards are tightening, and competent labour is limited. The industry’s shift toward lifetime value is seen in OEM portfolios.

Siddharth sharma , Division Manager at Tata Hitachi Construction Machinery Company Private Limited , sees this shift clearly. “Professionals in project procurement now prioritise long-term lifecycle value over only capital investment. Our attendance focused on offering a complete ecosystem that was intended to empower clients with high production, low running expenses, and long-term dependability rather than just showcasing devices.” For Tata Hitachi, dependability is not a marketing abstraction. With over 120,000 machines operating across India, reliability directly influences national project timelines.

Digital visibility is becoming increasingly important in this lifetime strategy. Telematics solutions now enable real-time monitoring of fuel use, machine health, and operator behaviour, transforming procurement into a continuous performance partnership rather than a one-time transaction.

Powertrain transition beyond diesel

India’s infrastructure growth corresponds with one of the industry’s most difficult transitions, moving away from full diesel dependency. While diesel will stay dominant in the foreseeable future, diversification is accelerating.

Ashok Leyland ’s power solutions roadmap illustrates how compliance with emissions regulations, packaging efficiency, and flexibility are reshaping engine procurement. Sathyanandan Mahadevan , Vice President and Head of Power Solutions Business, explains, “The ‘Unipak’ design of this engine is what really distinguishes it. The complete after-treatment system is built right on top of the engine unit. This delivers tremendous value from an engineering and procurement standpoint due to its great flexibility and ease of integration.”

Compact machinery, especially for urban infrastructure, is emerging as a growth segment. “The P-15I engine was created especially for the market for small machines. It is a perfect power source for compact devices like skid-steer loaders, road sweepers, and high-efficiency water pump sets that are becoming more and more important in urban infrastructure projects,” Sathyanandan adds.

At the heavier end of the spectrum, Weichai is preparing for rising tonnage demands in surface mining. Gurunath Kulkarni , Vice President, Weichai India , notes, “As tonnage requirements continue to climb, we expect a major change over the next ten years. We have introduced the WP14T and WP7T engine variants to match the growing demand for greater load-carrying capacities precisely.”

Electrification and alternative energy

While electrification garners attention, industry leaders are approaching it with pragmatism. For Volvo CE, sustainability is multi-dimensional. “It starts with our long-standing emphasis on fuel efficiency, which is the quickest approach to decreasing the carbon footprint of active job sites,” Krishnan explains. “However, the transition to electrification is currently a distinct and present trend.”

Access equipment rental companies have already embraced electrification due to regulatory and operational pressures. Sanjay Verma , Managing Director of Evolution Access Technologies and Mtandt Group , shares, “Currently, around half of the 2,000 machines in our fleet are electric. Without sacrificing power, this electrification enables our clients to operate in delicate interior environments and comply with zero-emission regulations.”

Beyond electricity, alternative fuels are gaining momentum. “Hydrogen is the ultimate future fuel,” says Krishnan. “While hydrogen fuel cells are being researched, we believe ‘Hydrogen ICE’ is a more viable near-term solution. It necessitates lower hydrogen purity while leveraging the existing engine infrastructure.”

Localisation as a strategic imperative

India’s desire for localisation is no longer only policy-driven; it is also financially imperative. Moses Eddy , Director of KOBELCO Construction Equipment India , explains this transition plainly. “The next focus is on reaching retail customers. We are intensifying localisation to meet retail customer needs, especially in pricing, while upholding high quality and reliability.”

The sourcing of Japanese engines manufactured in India for Kobelco’s SK-ET model is emblematic of this transition. “Make in India is strengthening, combining Japanese technology with India’s manufacturing capacity,” Eddy notes.

Mahindra Construction Equipment ’s approach to compact road machinery exemplifies how localisation may help underdeveloped markets. Dr. Venkat Srinivas explains, “Indian road contractors often struggle with oversized, expensive compactors that are difficult to manoeuvre in lanes and village roads. COMPAX has been positioned specifically as the heart of Indian mini compactors.”

Depth, safety, and productivity

India’s industrial aspirations still heavily rely on mining, especially for metal ores, coal, and limestone. OEMs are reacting with solutions designed specifically for the purpose. Amarnath Ramachandran , Managing Director of Arx Mining and Construction Equipment Private Limited , highlights this focus. “We introduced the UGV15, an underground personnel carrier, and the 18-tonne motor grader. The underground carrier is highly useful for underground mining operations, with multiple attachment options.”

Attachments are also transforming productivity. Piero Guizzetti , CEO of MB Crusher India, describes how decentralised processing is revolutionising remote projects. “The R800 enables operators to extract stone directly from the mountain face in isolated areas such as the Himalayas. There is no need for transportation or additional processing because the output is a nearly finished, usable product made on-site.”

Components, consumables, and the invisible backbone

The significance of components, fluids, and consumables has increased as machines have become more sophisticated. Vice President of Vinni Chemicals Private Limited Pawan Sharma observes, “Heat transfer fluids, including advanced coolants, along with speciality greases, have become critical enablers for modern construction and mining equipment, especially in the EV and hybrid machinery landscape.”

Similarly, bearing technology is evolving rapidly. A Rajesh Premchandran of National Engineering Industries Ltd. (NBC Bearings) notes, “By reducing friction, we reduce heat generation, improve fuel efficiency, and increase bearing life. We are also incorporating smart sensors into our bearings to capture real-time data.”

Often overlooked in procurement, hydraulics, filtration, and conveying systems are increasingly acknowledged as uptime drivers. @Sanjay Kumar Agarwal of Filtrec Bharat Manufacturing Pvt. Ltd. explains, “OEMs and large fleet operators particularly embraced our integrated approach because it simplifies supply chain procurement.”

People, skills, and service infrastructure

Technology alone cannot deliver Vision 2026. Skill shortages remain a pressing concern. Tej Bhadbhade of Aquarius Engineers Pvt. Ltd. highlights the urgency. “It is common for a driver to move into an operator role overnight, and it is our obligation to ensure they can operate our machines safely and efficiently.”

Rental models are also reshaping procurement behaviour. Harvinder Manocha of BAUER Engineering India explains, “Capital optimisation, project-based requirements, and the need for quicker deployment are making rentals quite popular in India.”

A blueprint, not a promise

Vision 2026 isn’t about speculating about the future. It is about value generation, localisation, and focused execution. The role of procurement experts is growing as they negotiate this shift, moving from buyers to strategic integrators.

India’s mining, infrastructure, and construction industries no longer strive to meet international standards. They are defining themselves. As this decade progresses, Vision 2026 presents both a challenge and an opportunity to create industrial ecosystems that are smarter, greener, and more resilient so that India’s economic narrative may continue.

Quotes

“The launch of EC210E has proven to be a decisive success; even in a slowing market, we have seen our volumes and market share increase, as the product delivers outstanding fuel efficiency.”

–        Dimitrov Krishnan, Managing Director, Volvo CE India

“For a procurement manager in the mining or infrastructure sectors, dependability means the difference between completing a project on time and incurring a significant penalty.”

–        Siddharth Sharma, Division Manager, Tata Hitachi

“The P-15I is a perfect power source for compact devices like skid-steer loaders, road sweepers, and high-efficiency water pump sets that are becoming more and more important in urban infrastructure projects.”

–        Sathyanandan M, Vice President & Head – Power Solutions Business, Ashok Leyland

“As tonnage requirements continue to climb, we expect a major change over the next ten years. We have introduced the WP14T and WP7T engine variants to match the growing demand for greater load-carrying capacities precisely.”

–        Gurunath Kulkarni, Vice President, Weichai India

“Without sacrificing power, electrification enables our clients to operate in delicate interior environments and comply with zero-emission regulations.”

–        Sanjay Verma, Managing Director – Evolution Access Technologies & CESL, Mtandt

“The next focus is on reaching retail customers. We are intensifying localisation to meet retail customer needs, especially in pricing, while upholding high quality and reliability.”

–        Moses Eddy, Director, KOBELCO Construction Equipment India

Indian road contractors often struggle with oversized, expensive compactors that are difficult to manoeuvre in lanes and village roads. COMPAX has been positioned specifically as the heart of Indian mini compactors.”

–        Dr. Venkat Srinivas, Executive Director & CEO – SML Mahindra Ltd; Business Head – Mahindra Construction Equipment

“We introduced the UGV15, an underground personnel carrier, and the 18-tonne motor grader. The underground carrier is highly useful for underground mining operations, with multiple attachment options.”

–        Amarnath Ramachandran, Managing Director, ARX Mining & Construction Equipment

“The R800 enables operators to extract stone directly from the mountain face in isolated areas such as the Himalayas. There is no need for transportation or additional processing because the output is a nearly finished, usable product made on-site.”

–        Piero Guizzetti, CEO, MB Crusher India

“Heat transfer fluids, including advanced coolants, along with speciality greases, have become critical enablers for modern construction and mining equipment, especially in the EV and hybrid machinery landscape.”

–        Pawan Sharma, Vice President, Vinni Chemicals Pvt. Ltd

“By reducing friction, we reduce heat generation, improve fuel efficiency, and increase bearing life. We are also incorporating smart sensors into our bearings to capture real-time data.”

–        Rajesh Premchandran, Chief Sales & Marketing Officer, NBC Bearings

“OEMs and large fleet operators particularly embraced our integrated approach because it simplifies supply chain procurement.”

–        Sanjay Kumar Agarwal, Managing Director, Filtrec Bharat Manufacturing Pvt. Ltd

“It is common for a driver to move into an operator role overnight, and it is our obligation to ensure they can operate our machines safely and efficiently.”

–        Tej Bhadbhade, GM – Operations, Aquarius Engineers Pvt. Ltd

“Capital optimisation, project-based requirements, and the need for quicker deployment are making rentals quite popular in India.”

–        harvinder manocha , Managing Director, BAUER Engineering India Private Limited

Around the beginning of 2025, when India’s annual spending on public infrastructure surpassed ₹11 lakh crore, a noticeable change began to take place at several project sites, including surface mines in Odisha, underground operations in Rajasthan, and expressways in Maharashtra and Gujarat. The change was not just in scale, but in intent. The focus of procurement discussions has shifted from acquisition costs and delivery schedules to other factors. Rather, boardroom and site-level conversations started to be dominated by questions about lifecycle value, localisation, energy efficiency, emissions compliance, service depth, and digital uptime.