The constant growth of the agriculture sector, high farm mechanization rate, and burgeoning on struction activities due to the rapid urbanization will drive the Indian tractor market during the forecast period (2020–2030). Moreover, the rising investments by the major tractor manufacturers in the country willfacilitate the market growth. Nearly 70% of Indians are dependent on the agriculture sector for their livelihood. The production of food crops, fruits, and vegetables requires tractors for sowing and harvesting. Owing to the vast size of the farming sector, tractors will always be significant for India.
Currently, the Indian tractor market is observing the trend of small tractors for agricultural practices. Small tractors are being utilized in large numbers for activities like mowing grass, hauling, and cleaning up the piles. This helps in enhancing the efficiency of agricultural activities, as a particular tractor is designed to perform a particular task. Moreover, these tractors also help in reducing the cost burden on the farmers, who can now purchase the tractor designed for a specific purpose only, without affecting the utility of the larger tractors.
Geographically, the northern states of Uttar Pradesh, Punjab, and Haryana account for large shares in the Indian tractor market because of the flourishing agriculture sector in these states. These states practice extensive farming and are key producers of wheat, pulses, and other staple food grains. Additionally, the states of West Bengal, Madhya Pradesh, Assam, Kerala, Karnataka, Gujarat, and Tamil Nadu also generate a high demand for tractors and will be significant contributors in the coming years as well.
Some of the leading companies in the Indian tractor market include Mahindra & Mahindra Ltd., John Deere India Pvt. Ltd., Claas Agricultural Machinery Pvt. Ltd., Tractors and Farm Equipment Ltd., Force Motors Ltd., Eicher Motors Ltd., and CNH Industrial (India) Pvt. Ltd. These players are involved in the production of earth-moving tractors, utility tractors, garden tractors, rotary tillers, orchard-type tractors, row-crop tractors, implement carriers, and industrial tractors, to be used for multiple purposes in the construction and agriculture sectors.
Thus, the expansion of the agriculture and construction industries will fuel the market growth in the coming years.
Source: P&S Intelligence