In FY'19 tractor sales in India grew by 10.24 per cent at 878,476 units as compared to 20.52 per cent and 15.74 per cent in FY'18 and FY'17 respectively. On a yearly basis the growth rate was almost halved in FY'19 over FY'18.
The growth was marred due to weak sentiment in later part of the year as sales slipped into negative in February and March 2019 on year-on year (yoy). This ensued into the fourth quarter performance posting a year on year decline of 5.78 per cent.
The India agricultural tractors market is projected to witness a CAGR 4.5% over the forecast period (2020-2025). Scarcity of farm labour is likely to increase the sales of tractors in the years to come. In terms of units, India is one of the largest tractor markets in the world, selling 600,000 to 700,000 tractors per annum, on an average.