FARM TRACTOR MARKET IN INDIA

India is an agricultural and a developing country. Agriculture is the primary source of income to around 58% of India’s population. But in recent years, the   contribution of agriculture to the Gross Value Added (GVA) has decreased from 18.2% in 2014-15 to 16.5% in 2019-20.

 

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India aims to double the farm income by 2022. This ambitious goal is expected to generate increased investment in agricultural infrastructure, and one of the parameters in the agricultural infrastructure is “Tractors’.

 

HISTORY OF TRACTORS IN INDIA

Tractors have come a long way since its first launch in the 1940s. Dependence on tractors increased as the technology developed. During the 1960s, companies like Eicher, Tractor and Farm Equipment Limited (TAFE), Escorts and Mahindra & Mahindra (M&M) came into existence. From the 1970s to the 1980s, tractors were imported from the East.

During the 1980s and 1990s, state owned tractor companies like Haryana Tractors and Punjab Tractors came into being. In 1998, New Holland Tractors came to India and invested 75 million dollars in the market. After the 1990s, India had almost 29% of the tractor population in the world.

 

 

TOP 5 TRACTOR COMPANIES IN INDIA IN 2020

Here is a list of top tractor brands in India in 2020:

  • Mahindra & Mahindra (M&M)
  • Tractors and Farm Equipment Limited (TAFE)
  • John Deere India Private Limited
  • Swaraj Tractors
  • Sonalika Tractors
  • Escorts Ltd

 

TOP 5 TRACTORS IN INDIA IN 2020

Here is a list of the top-5 tractors in India in 2020:

  • Mahindra 475 DI (4-cylinders, 42 HP, 2830 cc, ₹45-5.80 lakhs)
  • Farmtrac 60 (3-cylinders, 50 HP, 3147 HP, ₹6.30-6.80 lakhs)
  • John Deere 5310 (3-cylinders, 55 HP, 2900 cc, ₹7.89-8.50 lakhs)
  • Sonalika 745 DI III Sikander (3-cylinders, 50 HP, 3065 cc, ₹5.75-6.20 lakhs)
  • Massey Ferguson 1035 DI (3-cylinders, 36 HP, 2400 cc, ₹4.90-5.25 lakhs)

 

INDIA TRACTOR MARKET DYNAMICS

Indian Tractor market is the biggest market worldwide excluding the 20 HP tractors used in China, which accounts to one third of the global production. China and United States of America are the other major tractor markets in the world.

Indian Tractor Industry saw a positive growth during the years 2014-2017. Domestic sales increased by 18.2% in April 2016 to March 2017. The tractor exports curve remained flat during these years.

But, the tractor sales in India declined by over 10% in 2019-20 compared to 2018-19. In the past few years this is the first declination in the Indian Tractor Industry. The industry also suffered in 2020 due to economic slowdown, unusual monsoons and the Covid-19 pandemic.

Mahindra & Mahindra- the market leader recorded a drop of 7.8% sales in 2020 compared to 2019 although its market share increased by 1%.

TAFE lost 1.41% market share and a drop of 17% in sales. But, the top 4 market leaders- Mahindra & Mahindra, TAFE, Sonalika and Escorts have a combined market share of over 81%.

Even during this economic slowdown, the stand-out performer in 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 41%. TAFE’s market share declined from 23.1% in 2019 to 16.9% in 2020. Kubota is the stand-out performer with 1.8% share in the market considering the company arrived in 2016.

 

MARKET SIZE AND FORECAST

The Indian Tractor Industry still has a long way to go. Low level of tractor sales in India needs strong focus on availability of finance for agriculture tools and on rural development.

India farm tractor market is estimated at $XX Million in 2020 growing at –% CAGR till 2025.

 

 

COMPETITIVE LANDSCAPE

The development in technology and the wider agriculture market in India have resulted in evolution of Tractor manufacturers in India. Currently a wide range of tractors with a range of 15hp to 110hp are available.

The Indian tractor has compact tractors which give out 15-45 horsepower for heavy duty jobs to utility tractors which give out 45-110 horsepower for complex farming tasks. 

 

COMPANIES PROFILED

Sl noTopic
1Market Segmentation
2Scope of the report
3Abbreviations
4Research Methodology
5Executive Summary
6Introduction
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Disruptive innovation in the Industry
10Technology trends in the Industry
11Consumer trends in the industry
12Recent Production Milestones
13Component Manufacturing in US, EU and China
14COVID-19 impact on overall market
15COVID-19 impact on Production of components
16COVID-19 impact on Point of sale
17Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21Product installation rate by OEM, 2020
22Incline/Decline in Average B-2-B selling price in past 5 years
23Competition from substitute products
24Gross margin and average profitability of suppliers
25New product development in past 12 months
26M&A in past 12 months
27Growth strategy of leading players
28Market share of vendors, 2020
29Company Profiles
30Unmet needs and opportunity for new suppliers
31Conclusion
32Appendix

 

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