1. By:-
RB Chauhan
Jaipuria Institute of
Management,Noida
Indian Tractor Industry

2. Intro…
 Tractors are part of agricultural machinery industry.
 Tractors came to India through imports and later on were
indigenously manufactured with the help of foreign
collaborations.
 Tractor industry plays an important part. As agriculture
sector has A major contribution to India’s GDP.

3. Beginning…
 Bulldozers were imported for land reclamation and
cultivation in mid -1940s.
 In 1947 central and state tractor organizations were set up
to develop and promote the supply and use of tractors in
agriculture.
 Local production began in 1961 with five manufacturers
(Eicher, Gujarat Tractors, TAFE, Escorts, M&M ) producing
a total of 880 units per year.
 And by now one third of the world’s Tractor production
is in India.

4. Tractor Evolution in India
Year TIV
1951-1960 8,500 (In use, Imported)
1961-1970 37,000 (Production had
started with Eicher, Gujarat
Tractors, TAFE, Escorts,
M&M)
1971-1980 1,46,000
1981-1990 1,20,000 (Total production
was-1,40,000)
1991-2000 <2,00,000 (Total Production
exceeded-2,55,000)
2001-2010 Around 2,16,000

5. Current Scenario
Size of the
Industry
Tractor market in India is about Rs 6000 crores .
On an average around 400000 tractors are
produced and their sale is 260000
Geographical
distribution
T he tractor markets of Karnataka, Maharashtra,
Tamil Nadu, and Gujarat are growing ~ 50%.
Output per
annum
Domestic sales - 350,000 units p.a. and Exports
- 60,000 units p.a.
Percentage in
world market
About 20% of world tractor production is carried
out in India
Market
capitalization
CAGR in volumes @ 10 % over past four decades
with seasonal variations.

6. Stats…
Uttar Pradesh is the largest tractor market in our country.
One third of world's Tractor production is in India.
The Total Turn Over is 10,000 crores and the Total investment
is 8000 crores. With Employment of 28,000 people directly and
1,50,000 people indirectly the Tractor population is 30,00,000
compared to 9,00,000 in China.

7. Latest Development in India’s Agricultural
tradition
 Today in India there is an increase in awareness among the
farmers for the need of farm mechanization and are keen to
acquire tractor with the help of credit facilities from financial
institutions.
 Agronomists believe that there is need for more tilling due
to depletion of moisture and repeated cultivation of land .It
is precisely for this reason that the demand for tractors was
well maintained even during a drought period.
 Cost of tractors in India is the cheapest in world .The cost
of a finished tractor here is as much as the cost of gear box
in developed countries. Hence there exists tremendous
scope for exports.
 Animal power available is too inadequate to meet power
demand of our farmers. Mechanized operations are preferred
to eliminate drudgery and delay, also labor shortage during
harvesting increased the use of tractor.
 More farmers are opting for multiple cropping over last
decade. Country's net cropped area had remain virtually
stagnant while gross cropped area increased by about 4.7%.
This indicate the increased popularity of multiple cropping.

8. Cont.d,
 95% of tractor sales are on credit. Credit is extended by
commercial banks, state land development banks and
regional rural banks.
 Irrigation facilities reduce reliance on the monsoon and
allow for quick yielding varieties of food grain .This reduces
the cropping cycle to 3 -4 months from the traditional 5 -6
months. Reduced cropping cycle require deep tilling which
translates into higher demand for tractors.

9. Highlights of Indian Agriculture Sector
 Key sector of economy
 Contributes to 25 % of Indian GDP.
 Accounts for 13 % of India’s Exports
 Second largest producer of rice and wheat in the world.
 Largest Producer of pulses.
 Fourth largest producer of coarse grains.
 Second largest producer of vegetables, groundnuts and
fruits
 Current average growth rate 2.2%.

10. Tractor Manufacturer in India
 There are currently 14 players in the industry.
 Mahindra & Mahindra is the leading player in the industry.
 Monsoon season is a key driver for sales of tractors. A
series of good or bad monsoon can affect the sales.
 In recent years the industry has registered a good growth in
sales, both domestic as well as exports. This is also partly
because of the initiative of the government to boost up
agriculture and agricultural machinery industry.
 The medium horse power category tractors, 31 -40 HP, are
the most popular in the country and fastest growing
segment.

11. Major Manufacturers and Collaborators

12. Applications and variations
 Farm tractor applications
 Precision agriculture
 Engineering tractors
 Backhoe loader
 Compact utility tractor
 Row-crop tractor
 Row-crop tractor history
 Row-crop tractor safety
 Modern row-crop tractors
 Garden tractors
 Two-wheel tractors
 Orchard tractors
 Automobile-conversion tractors and other homemade
versions
 Alternative machine types called tractors

13. % Shares of different HP tractors of Total
sales

14. Conclusions
 Indian tractor industry, comparatively young by world
standards have expanded at a spectacular pace during last
four decades.
 The most popular size, of the tractor, in the country is, 35
HP, followed by, 25 and 45 HP. The
 farmer's choice, of tractor size, is a compromise, between,
the utility of the tractor, for multiple uses, including,
haulage and, its price.