JCB sold over 70,000 machines in 2007, 30% more than the previous year and 18% above the average market growth rate.
The company says emerging markets like India, Russia, Brazil, Bulgaria, Romania and Poland were a great source of business growth last year and its new products and ranges accounted for 50% of JCB's total sales increase.
It also appointed 46 new dealers, bringing the total to 670 dealers and 1,500 service depots worldwide. Parts sales increased by 16%.
In a statement, JCB says European economies are expected to be under pressure as exports to the US slow and the credit crunch is felt. The construction sector, in particular, could be affected by the downturn in North America, where the market fell 13% in 2007. The effects are expected to be felt in the house building market.
Despite these concerns, JCB says it will go ahead with its overseas investments this year. It has invested GBP36 million (USD71.5 million) to double capacity at the backhoe loader production facility near Delhi, India. Excavator production in the UK will expand with a GBP40 million (USD79 million) investment in a new factory. The GBP7 million (USD13.9 million) JCB Attachments factory in Uttoxeter, Staffordshire is nearly completed.
JCB is also pouring investment into improving its customer service worldwide with the creation of 6,000m² (64,584sqft) more warehousing capacity at the World Parts Centre in Uttoxeter, the opening of a 2,500m² (26,910sqft) warehouse in Moscow, the building of a 20,000 m² (215,278sqft) warehouse in Savannah, US and the opening of a 8,000m² (86,111sqft) warehouse in Pune, India.
JCB has performed well in India, selling 17,000 machines in 2007 compared to 10,800 machines in 2006. Turnover rose 60% from INR2,050 crores (USD521.9 million) to INR3,280 crores (USD835 million). There are now 45 dealers supporting end users from 285 depots. There were 202 depots in 2006.
JCB India managing director Vipin Sondhi says India is a "very important" market for JCB.
"We have planned our growth path by making strategic investments in our manufacturing facilities in both Ballabgarh and Pune.
"We are investing GBP36 million (USD71.5 million), doubling the capacity of our Ballabgarh plant in addition to spending GBP2.5 million (USD5.0 million) on a new parts distribution warehouse in Pune.
"JCB's ongoing expansion in India will create further direct employment, as well as additional opportunities for our dealers and for the training of operators who use JCB machines. Currently, over 3,000 operators are being trained in India and this number is likely to increase substantially in the years to come," Sondhi says.
JCB claims it is the market leader in sales of construction equipment in India, with one in two construction machines sold in the country manufactured by JCB.
Matthew Taylor, JCB's chief operating officer, says the company's growth has not been entirely dependent on market growth.
"We have grown faster than the market but there is nervousness and uncertainty for 2008.
"North America continues to be weak and we don't see any improvements on that this year, which in turn will put pressure on European economies. But infrastructure developments seem to be strong in most markets and the growth in emerging markets will continue."