Margin risks
Even so, rising demand from data centres could create a new challenge if customers increasingly shift to higher-horsepower (hp) models such as the QSK78 and QSK95 (3,500-4,500 hp) from the currently popular QSK60 (2,000-3,000 hp). While Cummins manufactures the QSK60 in India, the higher-horsepower models are imported from the US, and such a demand shift could dilute the domestic entity’s profit margins.
