In India two-third population is engaged in Agriculture. Tractors form an essential part of this sector. They bring the required efficiency and productivity country needs in its agricultural activity to compete on the international level.
The Indian tractor Industry has made preponderant
improvement in production capacity and in terms of production volumes. The
industry has been successful in indigenization of the technology. The volume
growth in the industry has remained strong since FY12. Currently, Indian
Tractor production contributes a third for the global tractor production. The
major segment in Indian Tractor Industry is of agricultural tractor.
The India Tractor Market has
seen significant growth in the last few years, recording a CAGR of ~% during
2016-2020 primarily due to normal and good monsoon, increased crop production
and agricultural produce, and strong push from Indian Government
Apart from economic
perspective, farm mechanization improves the quality of job and reduces stress
from farmer’s job. The demand for tractors declined during 2015-2016 due to a
contraction in the farm incomes, as the production of major crops and commodity
prices reduced with lower procurements by the government, owing to adequate
buffer reserves.
India
Tractor Market
By
Vehicle Category Type: Agricultural segment makes up majority
share of the Tractor market of the country, followed by the commercial segment.
Share for Commercial segment is low as Tractors are considered to be an
Investment for farms and specific to agriculture rather than commuting or
transportation. In addition to the same, various other farm equipment like
power tiller and Harvestor are also gaining strength.
India Tractor Market Size and
Segmentation
By
Vehicle Category Type: The Tractor industry has been primarily
dominated by the agricultural segment as they are multi-purpose. Commercial
tractors are those tractors that are used for carrying luggage or transporting
the loads. Tractors as a transportation vehicle as Indian individuals have more
inclination towards Trucks and Mini Vans.
Registration
by Region & State:
North and Western has the
highest share of Tractors due to the presence of manufacturing units and
agricultural production. It is followed by Punjab, Haryana and U.P. Apart from
the measures at the national level, several state governments are also
committed to promoting Tractors in their states to drive market growth.
Normal monsoon has been a
key driver of growth. It fuelled production and boosted farmers’ income, which
eventually aided the expansion in tractor demand. All key states like
Maharashtra, Madhya Pradesh, Bihar, Karnataka, Gujarat, Andhra Pradesh and Uttar
Pradesh showed positive growth.
The southern region outpaced
all other regions on a uniform basis over the past three years, with growth
being led by a strong demand in Andhra Pradesh , Tamil Nadu and Telangana.
Government support programs and improved rural sentiments helped maintain the
growth trajectory in these states.
The eastern region continues
to report strong volume growth within the current fiscal, albeit on a coffee
base, benefitting from various government initiatives to spice up farm
mechanization.
The northern region
continues to lag the pan India growth. Uttar Pradesh, the most important
tractor market within the region, has recorded healthy growth. Other key
markets of Rajasthan and Punjab still struggle, as a results of weak haulage
and replacement demand respectively.
Competitive Scenario in India Tractor
Market
The competition in the
Tractor market in India is highly concentrated where leading manufacturers hold
around ~% share in the market. The major tractors include Mahindra &
Mahindra Limited (Tractor), Mahindra & Mahindra Limited (Swaraj Division),
International Tractors Limited, Tafe Limited, Escorts Limited (Agri Machinery
Group), John Deere India Pvt Ltd. (Tractor Division), Eicher Tractors, Cnh
Industrial (India) Pvt Ltd, Kubota Agricultural Machinery India Pvt.Ltd.,
V.S.T. Tillers Tractors Limited. The market is highly unorganized and comprises
of small assemblers who source part from China. These players compete on
parameters Product Portfolio, Distribution Network, Pricing, Discounts, and
Geographical Location, value Added Services, Collaborations & Partnerships
and After Sales Service.
India
Harvestor Market
By
Region (in Units): Harvestor follow the trend similar to
Tractors. Major contribution regions are North and then East. ~60% Unit
registration is clocked in by Northern Region. During COVID-19, the farm
equipment business has seen a severe dip in sales, and therefore the most
affected business could also be the dealership network thanks to the disruption
supply chain. This can affect the internal transport facility and business.
By
Region and State: The Indian combine harvester market is
projected to register a CAGR of ~ during the forecast period (2021-2026).
During COVID-19, the farm equipment business had seen sudden dip in sales, and
therefore the most affected business could also be the dealership network
thanks to the disruption supply chain. Additionally, manufacturing units were
not completely active, which had resulted during a sharp decrease in sales in
2019-2020. Hence global pandemic had caused a negative impact on the Indian
combine harvester market but now they have recovered from the slump. Combine
harvesters in India are majorly used for harvesting grains and cereals in
comparison to other crop types within the country.
By
State (in Unit Registration): Combine harvesters in India
are majorly used for harvesting grains and cereals in comparison to other crop
types within the country. Farmers prefer self-propelled combine harvesters over
tractor-mounted harvesters thanks to their high efficiency.
Largest contribution states
is Punjab which contributes highest unit sales to Combine Harvestor Sales in
Northern Region.
Competitive
Scenario in India Harvestor Market
The competition in the
Harvestor market in India is highly concentrated where leading manufacturers
hold around ~% share in the market. The major tractors include John Deere India
Pvt Ltd, Manku Agro Tech Pvt Ltd, Kartar Agro Industries Pvt Ltd, Preet Agro
Industries Pvt Ltd, Mahindra & Mahindra Limited, Malkit Agro Tech Pvt. Ltd,
Guru Nanak Agri Engg Works, Dasmesh Pvt. Ltd, Cnh Industrial (India) Pvt Ltd,
K.S. Agrotech Pvt Ltd, Surindera Agro
Insdustries, K.S. Agricultural Industries Pvt. Ltd, Hind Agro Industries, Hira
Agro Industries, Claas India P Ltd, Sonalika Industries, New Hind Agro Pvt Ltd,
Punjab Agro Implements Industries. The market is highly unorganized and
comprises of small assemblers who source part from China. These players compete
on parameters Product Portfolio, Distribution Network, Pricing, Discounts, and
Geographical Location, value Added Services, Collaborations & Partnerships
and After Sales Service.
India Tractor & Harvestor Market
Future Outlook and Projections
The India Tractor and
Harvestor Market is expected to increase at a CAGR of ~% during 2020 to 2025
basis volume. The Agricultural segment will continue to dominate the India
Tractor with ~% market share by 2025. The government has launched various
programs in order to develop the infrastructure of the country hence
facilitating the manufacture of tractors in the future years. Rising demand for
the agriculture produce in the country will accelerate the demand for Tractor
and Harvestor. The forecast period is also expected to witness entry of more
foreign and domestic players in the industry.
For More
Information, refer to below link:-
India Tractor Market Outlook to 2025- By Vehicle Category
(Agriculture and Commercial), Registration by Region (North, East, West, South)
and Registration by State
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