India Agricultural Tractor Market - Growth, Trends, and Forecast (2020 - 2025)

The India Agricultural Tractor Market is segmented by Engine Power into Less than 20 HP, 20-35 HP, 36-45 HP, 46-75 HP and above 75 HP and by application into row crop tractors and orchard tractors.

Market Snapshot

Study Period:

2015-2024

Base Year:

2019

Major Players:

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Market Overview

The India agricultural tractors market was valued at USD 6.97 billion in the year 2018 and the market is projected to witness a CAGR of 6.9% over the forecast period (2019-2024). 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. The demand for tractors declined during Financial Year 2015-16 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. However, India remains a highly lucrative tractor market on account of the decreasing availability of farm labor and the rise of innovative business models such as custom hiring solutions for tractors.

Scope of the Report

A tractor is an industrial vehicle usually with one or two small wheels in front and two large wheels at the back used in agriculture and other functions. It is used to move the attached implement that does the work of plowing the field or perform other activities. For the purpose of this report, the tractors used in agricultural operations have been considered. The report does not cover other agricultural machinery and attachments to tractors. Tractors used for industrial and construction purposes are also excluded from the study.

By Engine Power
Less than 20 HP
20-35 HP
36-45 HP
46-75 HP
Above 75 HP
Application
Row Crop Tractors
Orchard Tractors
Other Applications

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Key Market Trends

Increasing Trend of Mechanization in Agriculture Industry

According to thirteenth Five-year Plan (2017-2022) of Ministry of Agriculture and Farmers Welfare, the pace of mechanization is more than the national average in Uttar Pradesh, Haryana, western parts of Rajasthan and Punjab. In the rest of the country, it is comparatively low, which necessities the stimulation of farm mechanization as a special mission. The Ministry of Indian Agriculture states that farm mechanization adoption would increase production by 20% and reduce the cost of cultivation by 20-25%. The main strategy of this mission is to provide financial assistance to small and mid-scale farmers to hire machinery in less mechanized areas. This is done by establishing farm machinery banks in selected villages of low mechanization.

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Rising Need for Operational Efficiency and Profitability

Being predominantly an agrarian economy, India owes 17% of its GDP to farming and about 60% of India's rural households depend on agriculture or other associated activities for a living. Despite having the second largest arable land after the US, the country is way behind some developed as well as developing nations in terms of agricultural productivity. This is the result of some operational inefficiencies typical to the country, for example, dependence on rainwater for irrigation of fields. the government, as well as the bigshot players in the private sector, are seeing this as an opportunity to invest in. Hence, it is expected that with favorable government policies and the introduction of better and enhanced tractors in the market, there will be significant growth of the industry in the forecast period.

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Competitive Landscape

The agricultural machinery market in India is consolidated and is dominated by large global and domestic manufacturers and farmers prefer trusted brands for assurance of quality and after-sales services offered by the big companies. Machines are manufactured domestically since most international companies have their local production setups in the country. In fact, the Indian company Mahindra Tractors is one of the global leaders in the tractors industry.

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Buyers

      2. 4.4.2 Bargaining Power of Suppliers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Engine Power

      1. 5.1.1 Less than 20 HP

      2. 5.1.2 20-35 HP

      3. 5.1.3 36-45 HP

      4. 5.1.4 46-75 HP

      5. 5.1.5 Above 75 HP

    2. 5.2 Application

      1. 5.2.1 Row Crop Tractors

      2. 5.2.2 Orchard Tractors

      3. 5.2.3 Other Applications

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Mahindra & Mahindra Limited

      2. 6.3.2 John Deere India Private Limited

      3. 6.3.3 CNH Industrial (India) Pvt. Ltd

      4. 6.3.4 TAFE Ltd.

      5. 6.3.5 International Tractors Limited (Sonalika)

      6. 6.3.6 Escorts Group

      7. 6.3.7 Eicher Motors Limited

      8. 6.3.8 Kubota Corporation

      9. 6.3.9 Force Motors Limited

      10. 6.3.10 Same Deutz-Fahr India Private Limited

      11. 6.3.11 CLAAS Agricultural Machinery Private Limited

      12. 6.3.12 Preet Group

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPEDIX

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