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A farm tractor is a powerful agricultural vehicle designed to perform various tasks on the farm, such as plowing, tilling, planting, and harvesting crops. These machines typically consist of a powerful engine, sturdy chassis, and multiple attachments or implements that can be easily interchanged to suit different farming operations. Tractors play a crucial role in modern agriculture by significantly reducing the manual labor required for various tasks, thereby improving efficiency and productivity on the farm.
There are several types of farm tractors, including utility tractors, row crop tractors, orchard tractors, and specialty tractors tailored for specific farming applications. Each type of tractor is designed with unique features and specifications to meet the diverse needs of farmers operating in different agricultural environments.
The benefits of using farm tractors are numerous. They enable farmers to complete tasks more efficiently and quickly, leading to increased productivity and higher yields. Tractors also help reduce labor costs and physical strain on farmers, making farming operations more sustainable and less dependent on manual labor. Additionally, modern tractors often come equipped with advanced technologies such as GPS guidance systems and precision farming tools, further enhancing productivity and precision in agriculture.
Despite their many benefits, farm tractors also pose certain risks and challenges. One significant risk is the potential for accidents and injuries, particularly when operating heavy machinery in challenging terrain or under adverse weather conditions. Moreover, the initial investment cost of purchasing a tractor and its associated implements can be substantial, which may pose a financial challenge for small-scale farmers with limited resources. Additionally, the maintenance and repair costs of tractors can be high, especially if they are not properly maintained or operated.
Furthermore, the widespread adoption of tractors in agriculture can have environmental consequences, such as soil compaction and increased fuel consumption. Soil compaction caused by heavy tractors can degrade soil structure and reduce fertility over time, impacting long-term agricultural productivity. Additionally, the use of fossil fuels in conventional tractors contributes to greenhouse gas emissions and air pollution, highlighting the need for sustainable alternatives such as electric or autonomous tractors in the future.
Overall, while farm tractors offer significant benefits to modern agriculture, addressing their associated risks and challenges is essential to ensure sustainable and efficient farming practices in the long term.
India stands second worldwide for Farm outputs. The share of agriculture in India’s GDP has reached 19.9% for the first time in the last 17 years, making it the sole bright spot in GDP contribution and employing 41.49% of the workforce in 2020.
Agriculture was largely insulated from the lockdown in India as timely and proactive exemptions from COVID-induced lockdowns to the sector facilitated uninterrupted harvesting of crops. However, supply chain disruptions impacted the flow of agricultural goods.
Increased adoption of precision farming technologies such as GPS guidance systems and variable rate technology is a key trend driving the farm tractor market in India, enhancing efficiency and productivity in agriculture.
The growing popularity of electric tractors and hybrid models is emerging as a significant trend, driven by concerns over environmental sustainability and the need to reduce dependence on fossil fuels.
Collaboration between tractor manufacturers and technology companies to develop innovative solutions for farm mechanization is a notable trend shaping the Indian tractor market, fostering technological advancements and improved agricultural practices.
Rising demand for compact and versatile tractors suitable for small-scale and diversified farming operations is driving manufacturers to introduce a wider range of models tailored to meet diverse farmer needs.
Government initiatives promoting farm mechanization, such as subsidies and incentives for tractor purchases, are expected to drive market growth and encourage farmers to invest in modern agricultural equipment.
The emergence of rental and leasing services for farm equipment, including tractors, is gaining traction in India, offering farmers greater flexibility and access to machinery without the burden of ownership.
Integration of artificial intelligence (AI) and machine learning technologies into tractor systems for predictive maintenance and autonomous operation is an evolving trend that has the potential to revolutionize farming practices in India.
Manufacturers’ focus on enhancing the durability and reliability of tractors to withstand harsh operating conditions and maximize uptime is a key trend aimed at improving overall customer satisfaction and loyalty.
Adoption of digital platforms for equipment sales, service bookings, and farmer support services is becoming increasingly prevalent, streamlining operations and enhancing the overall customer experience in the tractor market.
The rise of agri-tech startups offering innovative solutions such as farm management software, IoT-enabled sensors, and drone technology is driving industry-wide collaboration and fueling the development of integrated farming systems in India’s tractor market.
Mahindra & Mahindra Ltd: A major Indian player, Mahindra & Mahindra collaborated with Mitsubishi of Japan to develop tractor platforms ranging from 13HP to 70HP. This indicates their focus on innovation for a wider range of tractor needs.
Mechanization of agriculture enhances productivity, besides reducing human drudgery and the cost of cultivation. Mechanization also helps in improving the utilization efficiency of other inputs like the safety and comfort of the agricultural worker.
Total farm mechanization in India has been lower at 40-45% compared to other countries such as the USA (95%), Brazil (75%) and China (57%). The government has decided to enhance farm power availability from 2.02 kW/ha (2016-17) to 4.0 kW/ha by the end of 2030 to cope with increasing demand for food grains.
The farm mechanization market in India has been growing at a CAGR of 7.53 per cent during 2016-2020 due to thrust given by various government policies
Long back then in 1961, the annual production of tractors was 880 units per year and major manufacturers were Eicher, Gujrat tractors, TAFE, Escorts and M&M. Credit facilities for farmers continued to improve and the tractor market expanded rapidly with the total use passing the half million mark by 1980 to about 700000 units per year in 2020. Today about 20% of world tractor production is carried out in India.
India’s growth is unmatched even with the country’s long history of tractor manufacturing and various policies adopted by the government to enable it to effectively meet the demand.
95% of tractor sales are on credit. Credit is extended by Commercial banks, state land development banks and regional rural banks.
Most companies use Constant Mesh transmission and prefer center Shift, these types of tractors have about 60% market share, For quieter operation, more durability and less maintenance. Over the past two years, manufacturers have been less involved in the innovation of powertrains and more concentrated on improving product portfolios like live monitoring and Diagnostics tools in instrument clusters.
Mahindra & Mahindra Ltd and Mitsubishi of Japan to develop four new platforms for tractors ranging from 13HP to 70HP.
Tractors and Farm Equipment Limited (TAFE), and IIT-Kanpur, India will together be developing technology for tractor engines that can run on Dimethyl Ether (DME), rather than fuels like diesel and petrol. DME is clean burning and non-toxic, and is potentially renewable fuel.
The minimum lifting capacity of PTO pumps in India varies from 750Kgf to 3650Kgf because this feature is very important in India as tractors are used for non-agricultural purposes also.
TAFE and New Holland procure their tractor engines from Simpsons and Fiat Powertrain Technologies (FPT). Mini & Compact tractors with their power ranging from 15Hp to 50Hp have a market share of almost 90% in India.
Here is a list of the top 10 tractors in India in 2020:
Indian tractor market is the second biggest market worldwide which accounts to one-third of the global production. China and the United States of America are the other major tractor markets in the world. The market share of less than 20 HP tractors doubled in recent years and the segment has seen much technological advancement.
Sales within India closed at 802,670 units in 2020, 11 % higher than 2019 volumes and 1 % more than the previous all-time record, set in 2018 during a pandemic year. Mahindra & Mahindra- the market leader recorded an average sales growth of >15% post-lockdown every month and their total market share declined 2% in 2020 compared to 2019.
TAFE had an 18% market share and a rise of 15.6% in sales. But, the top 3 market leaders- Mahindra & Mahindra, TAFE and Sonalika have a combined market share of over 72%. Even during this economic slowdown, the stand-out performer in the Indian tractor Industry was Japan-based Tractor manufacturer- ‘Kubota’ which grew its sales by 18% and a market share of 0.44%.
Based on the last 5 Financial Years, Mahindra & Mahindra holds the top position in its market shares at around 39%. Sonalika has a market share of 15% and had a growth of 40.5% in 2020 compared to 2019. Kubota is the stand-out performer with a 1.8% share in the market considering the company arrived in 2016.
The Farm Tractor Market in India accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.
The farm tractor market in India is estimated at $XX Million in 2020 growing at –4.5% CAGR till 2025.
