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Estimating Demand for Tractors in India by 2024-2025: Identifying States That Will Rev Up Growth in Demand

  • ID: 4849774
  • Report
  • Region: India
  • InfraInsights
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FEATURED COMPANIES

The tractor is a symbolic and integral part of the overall agriculture sector in India and tractorisation as a backbone of farm mechanization has played a pivotal role in bringing about the green revolution in the country. 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. This report “Estimating Demand for Tractors in India by 2024-2025” will adopt a mix of primary and secondary research based approach, to understand the typical profile of farmers in different states, districts, the land parcel held, tractors owned, crop production achieved and the prevailing MSP and monsoon. Analysis of these variable will throw correlation between different parameters and will be insightful for tractor companies to position their products and better package their sales and marketing efforts. The analysts have visited different towns / districts based on the agriculture clusters and have done a ground up analysis to bring credible insights that will be of significant value to Tractor OEMs.

Note: Product cover images may vary from those shown
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FEATURED COMPANIES

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

16. Industry SWOT & PESTEL Analysis

17. Company Profiles

18. Agriculture profile of key states
Land Utilization
Land Ceiling Limit
Operational Land Holding
Major Crops, Production & Yields
Cropping intensity
District wise crop production
Season wise crop production
Segmentation of land parcels under cultivation
<2.5 acres
2.5 – 5 acres
li>5 – 20 acres
> 20 acres
Irrigation by different sources
Shift in crop type

Note: Product cover images may vary from those shown
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  • M&M
  • TAFE
Note: Product cover images may vary from those shown
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