Doosan Bobcat has begun production of backhoe loaders in India for the first time, following the purchase of a plant in the country.
The milestone marks the company’s entrance into the world’s third largest market for the compact construction equipment industry after the USA and China. The plant includes a 15,000m3 factory floor and is capable of producing up to 8,000 machines a year.
Doosan Bobcat has entered the backhoe loader market in a bid to expand its emerging market portfolio with the aim of exploring mid- and long-term growth engines.
Since 2014, the Indian backhoe loader market has grown at an average annual rate of 9.7%.
Doosan Bobcat has acquired idle facilities to produce backhoe loaders in India to minimize its risk of investment.
Available next year
By dramatically shortening the period from preparation time to shipping time compared to the time taken to establish an entirely new plant, the company will be able to start releasing its first batch of backhoe loaders in the second half of next year. It will then focus on marketing activities targeting the Indian market in a bid to expand its market share.
The 80,000m3 plant was taken over by the company in May, and on June 4, Doosan Bobcat president and CEO Scott Park visited the site to ensure progress in preparation for making it operation-ready is continuing.
Park said, “With government-led infrastructure investment increasing in recent years, the compact market is growing rapidly in India, making it a highly attractive market. Our mid and long-term goal, beginning with backhoe loaders, is to lead the Indian small construction machinery market.”
June 22, 2018