Tractor Market in India: Focus on less than 20 HP and more than 50 HP segment)

Indian tractor market has undergone sluggish growth in the year 2015 due to various factors like abnormal rainfall with uneven spread and timing, and week agricultural sentiments. This uncertainty has caused reduction in Kharif and Rabi crop by 4-7% in turn affecting the Indian tractor industry.

Adoption of tractors in India is very low when compared to global standards.  Furthermore, adoption is not uniform throughout the country. Northern states are more or less saturated with most new sales being replacement demand, while the penetration in Southern states is quite low. The market in some of the Southern states had been growing steadily at a CAGR of 20 plus percent. From previous year trends, we can analyze that demand for <20HP and >50HP   tractors is increasing with a CAGR of 9% and 6% respectively. The sum of both <20HP and >50HP constitute for around 10% of total tractor market share. In spite of domestic market being weak, the demand from the outside countries like Srilanka, Indonesia, Bangladesh has kept the Indian tractor market steady. The poor performance of sub-segments like 30-40 HP and 40-50HP tractors is reflecting the slow growth in Tractor industry.

Due to high market competitiveness, many players have introduced new products with different features to attract the market and expand geographically. M&M, VST, TAFE, Sonalika, Escorts and Captain Tractors are main players in <20HP and >50HP segment. Recently M&M introduced two new tractor of 60HP (960FE) and 15HP (Swaraj 717) to the market. Companies like VST are increasing the manufacturing capacity to meet increasing demand of  <20HP tractors. Competition in <20HP is gearing up where other major players like Escorts and Sonalika are planning to enter this sub-segment. 


Tractor Market

The factors like government initiatives in farm mechanization, decreasing farm the labor and good credit support is driving the Indian tractor market. Central and Western region are exhibiting healthy growth compared to other regions when it comes to less than 20HP tractor segment.

The objective of this report is to provide data and insights around the two important sub-segments of the Indian tractor market, less than 20HP and more than 50HP tractors.  The report provides current market size for tractors (2015) and forecasts the demand for these products until 2020. The report also covers information around market shares by HP segments, penetration of tractors by states/regions among others.

Table of Contents

I. Executive summary

  1. Introduction 
  2. Summary of key findings

II. Overview of Indian tractor market

  1. Segmentation of tractor market by power output (HP)
  2. Segmentation of tractor market by region and state
  3. Segmentation by players
  4. Projection of market volumes (2015-2020)

 III. Overview of Indian tractor market less than 20 HP

  1. Market share by players
  2. Market shares by region
  3. Market size projection (2015-2020)
  4. Key demand drivers for tractors (Less than 20 HP)      

 IV.  Overview of Indian tractor market more than 50 HP

  1. Market shares by players  
  2. Market shares by regions
  3. Market size projection (2015-2020)
  4. Demand driver of tractors (more than 50 HP)    

  V. Impact of Bharat stage IV implementation on tractor manufacturers

  VI. Recommendation for tractor manufacturers

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