The demand of used Construction Equipment in India has surged in the last few years, but the country’s used Construction Equipment segment is still in a nascent stage as compared to the global market. As the segment is still emerging, it faces various challenges.
The emergence of some the organized players, is trying to overcome the challenges faced by the segment.
Here we will see the challenges faced by used construction equipment market in India and how some of the organized players are trying to reduce the challenges by the segment with their professional approach.
1- As compared to the world’s most developed nations, the Indian used construction equipment market is not highly organized, relatively very small, highly fragmented and mainly dominated by small players.
2- Due to the lack of organized players in the segment, these small players or dealers do not have varieties of the construction machines; they usually keep general equipment like Backhoe Loaders, Cranes or Excavators. Generally, buyers face challenges getting specialized machines in used segment. With the emergence of few organized players like Equipment One Stop, is helping buyers make a maximum use of the segment.
3- The reach of local dealers in used segment is also very limited, For example- a local player in Pune (Maharashtra) may not have reach outside Pune, but an organized player is not only limited to one state or one region but provides services across the country. Few online players like Equipment One Stop, Infra Bazaar, Quippo are trying to give wings to the Indian used Construction equipment market and making the segment more credible.
4- It faces the lack of consistency in the demand, as the segment is mostly dominated by the smaller players. The segment also lacks the professionalism and credibility.
5- Buyers face challenges in getting well-maintained used construction machines. Generally, people who already decided to sell the machine do not care the machine properly. The owner must understand that more the machine is in condition, the better resale price the owner will get.
6- In the used construction equipment segment, buyers hardly get the technologically sound machines, is also one the major challenge faced by the segment. But few online players like Equipment One Stop is having a wide range of products across the country, they are capable of meeting the customer’s requirement.
7- Even selling second-hand machines are also a matter of concern as the segment is not fully organized in India. The online platforms are credible players where sellers can post the details of the machine which can attract the buyers from across the country, the market as a whole yet to be developed in the country.