The industry has kept pace with the growth in the overall economy and has been growing at a CAGR rate of 6-8% on the production basis. Demand for tractors is highly dependent on the agriculture activity in the country and that invariably is dependent on monsoons and the minimum support price (MSP).
From total manufacturing volume 2.2 lakh units in 1996-97 to a peak of 7 lakh units in 2013-14, the tractor industry has witnessed a significant run and the period from 2002-03 till 2013-14 was a kind of bull run for the tractor industry in India. Domestic sales in FY18-19 are estimated to be ~ 7.8 lakh units and roughly 92,000 units of tractors were exported in the same year.
Dominated by M&M that commands over 40% of market share, followed by TAFE, there are over 12 major players. Unlike M&M which has national reach and presence, some of the other smaller players are more of a regional player. A wide array of tractors, ranging from 12 to 75 HP, are available to the Indian farmer. Amongst these, the most favoured tractor power segment among the farmers is 31-40 HP which contributes nearly 50% of the total tractor industry.
In the last few years, a substantial shift has been observed towards the higher HP segment due to increased use of implementation attached to tractors and better products/technologies that are predominantly supplied by all major Indian and global tractor manufacturers at competitive pricing.
Demand for tractors, varies from state to state, and this variance is driven by the size and scale of agricultural activity in any given state and the level of tractor penetration in a given state. Traditionally, Haryana, Punjab and Uttar Pradesh are the main states for the tractor market. In the last few years, new markets for tractors are emerging in the states of Madhya Pradesh, Andhra Pradesh, Tamilnadu, Maharashtra and Gujarat States. In terms of the installed base of tractors, U.P form ~20% of the total installed base of 60 lakhs tractors, followed by Rajasthan at 13%, M.P, Haryana & Gujarat form 8% each in the total installed base.
Agriculture is main source of livelihood for the majority of the population in agrarian states like U.P, Punjab, Haryana, M.P, etc and more than 70 percent of the population directly or indirectly depend on agriculture and allied sectors.
Key Topics Covered:
1. Executive Summary
2. Research Approach & Methodology
3. Tractor Market Landscape Key OEMs Key demand pockets Market classification by capacity ratings Demand variables Distribution structures Replacement cycle
4. Trends in Tractor Sales in India Year wise production, sales & exports Month wise production, sales & exports
5. Level of mechanization across major agrarian states in India Punjab Haryana Maharashtra Rajasthan Gujarat M.P Chhattisgarh Karnataka Others
6. State wise Installed base of Tractors in India Yearly sales of Tractor in India
7. Tractor Manufacturing Capacity in India Manufacturing capacity of different OEMs Manufacturing plants locations Capacity Trend in capacity utilization
8. Tractor Market in 2018-19 Market by OEMs Market by capacity ratings Less than 30 hp 30-40 hp 40-50 hp Above 50 hp Market by States / Regions Market by states / region and OEMs Market by New vs Replacement Market by Domestic Sales Vs Exports Market by Domestic Vs Imports
9. Benchmarking OEMs National Market Share Regional Market Share HP wise Market Share Product Portfolio Exports volume Sales & Distribution Network Customer Outreach Strategy Product Pricing
10. Trend analysis on Rainfall & MSP for Crops
11. Farm Loan Waivers and its Impact on demand for Tractor
12. Scenarios for Forecast Pessimistic - taking cue from trend line in monsoon and msp Realistic - good monsoon in next 2 years followed by 1 or 2 years of below avg monsoon & one off MSP hike Optimistic - continuous 3-4 years of good monsoon backed by MSP hikes Replacement cycle Interest rate cycle
13. End Consumer Interviews - Farmers (organized & unorganized), Industry Personal interviews across different states / regions to find factors that define new purchase or replacement of existing
14. Projected demand for New Tractors by 2025 - Demand side forecast modelling by scenarios Demand by States / Region Demand by hp rating Demand - New Vs Replacement Market share of OEMs by States / Regions Market Share of OEMs by hp rating within each states / regions
15. Projected demand for New Tractors by 2025 - Supply side forecasting