The Indian tractor market is set to grow about 8-10% in FY19. However the Tractor sales growth halved in 2018-19. FY18 had closed with a 22 per cent growth and sales volumes of 711,478 units, compared to 582,846 units a year ago. However, the tractor industry is not expected to witness any major product launches over the next 2 years, due to the transition to the new emission regime by 2020. The Indian tractor industry is believed to be among the largest tractor markets in volume terms, contributing 35 per cent of the global volumes. The Indian industry saw a spike of over 20 per cent in volume.
Performance of the Key players
The largest tractor maker Mahindra&Mahindra is eyeing a growth of 8-10 per cent during the current fiscal in the domestic market on the back of technology products that would give a fillip to its farm machinery business. Mahindra and Mahindra recorded its highest-ever annual domestic sales in tractors with a total sale of 304,019 units in FY 2018, which was a significant rise of 22% compared to the previous year. Going ahead, the company plans to invest in a new tractor manufacturing plant in FY 2019, which is an indication of sales figures going only upward in the time to come.
Tractors & Farm Equipment (TAFE), on the other hand, is gunning for a 20 per cent growth in FY19 and is mulling for a new product range across segments.
Other manufacturing companies like Sonalika, ITL and Escorts also recorded considerable growth in the last year.
Lack of optimum financing, poor Rabi crop sowing and weak crop prices have limited tractor sales growth to around 8% in FY19, against over 20% in the previous fiscal (FY18).