Indian Tractor Market – 2011 Edition

Indian Tractor Market – 2011 Edition

Recovery in industrial performance and fiscal incentives initiated by the government of India during the global slowdown has led to a substantial growth in the overall economy and also agricultural sector. The Indian tractor market is one of the largest markets in the world by volume. The domestic tractor industry is fragmented, characterized by the presence of 13 national players and some regional players. Due to global economic slowdown and cyclical nature of tractor business in India which had a strong relation with monsoons, production of tractors was significantly affected in FY09 and FY08.

The Indian tractor market is primarily a medium HP (Horsepower) market; however, there is a gradual shift towards higher HP segments supported by a number of factors including replacement demand for higher HP tractors in Northern region, increasing use of tractors in non-agricultural applications and the growth in exports which again is a high HP market.

Currently low levels of tractor penetration in India, strong governmental focus on availability of finance for agriculture mechanization tools and on rural development and high irrigation potential will drive the overall growth of the tractor industry. In addition, government initiatives such as the implementation of National Rural Employment Guarantee Act (NREGA) and increased usage in non-agricultural domains such as haulage in construction and infrastructure projects will further increase demand of tractors. Also, many manufacturers are introducing new models of tractors into the market to leverage the growing demand.

Main manufacturers of tractors in India include Mahindra and Mahindra, Escorts, TAFE Ltd, ITL and Eicher. The industry is dominated by Mahindra and Mahindra (M&M) followed by Tractors and Farm Equipments (TAFE), Escorts, L&T-John Deere, and International Tractors Limited.
1. Introduction: Farm Equipment Market

1.1 Types of Farm Equipments

1.1.1 Farm Tractors
1.1.2 Primary Tillage Machine
1.1.3. Secondary Tillage Machine
1.1.4. Sowing and Planting Machine
1.1.5 Harvesting Machines
1.1.6. Crop Processing Machine

1.2 Agricultural Equipment Industry: Value Chain
1.3 Global Agricultural Equipment Sales: 2000-2009
1.4 Product Segmentation of Agricultural Equipment: 2009
1.5 Geographical Segmentation of Farm Equipments: 2009

2. Global Tractors Market

3. Indian Tractor Market

3.1 Overview of Indian Tractor Market

3.1.1 History of Tractors in India
3.1.2 Segmentation of Tractors
3.1.3 Usage in Various Segments

3.2 Market Size - Indian Tractor Market

3.2.1 Production of Tractors in Units
3.2.2 Sales of Tractors
3.3.3 Exports of Tractors in Units

3.3 Market Segmentation

3.3.1 Market Share of Various Farm Equipments V/S Tractors in India: 2009
3.3.2 State Wise Breakup of Sales of Tractors in India: FY10
3.3.3 Tractor Sales by Power Category

3.4 Market Drivers

3.4.1 Improving Total Agricultural Production
3.4.2 Improved Availability of Loans and Subsidies
3.4.3 Low Penetration of Tractors
3.4.4 Rise in Exports of Tractors
3.4.5 Increased Usage of Tractors in Non-Agricultural Purposes
3.4.6 Declining Availability of Labor for Agricultural Activities

3.5 Industry Trends and Developments

3.5.1 Increased Wealth of Indian Farmers Due To Growth in Minimum Support Prices
3.5.2 Foreign Collaborations
3.5.3 Introduction of New Models and Technologies
3.5.4 Trend in Average Sales Price of Tractors
3.5.5 Information on Average Tariff
3.5.6 Benefits and Restrictions for Foreign Companies

4. Market Outlook - Indian Tractor Industry

List of Figures

Agricultural Equipment Industry - Value Chain
Global Agricultural Equipment Sales: 2000-2009
World Demand of Major Agricultural Equipment Products (% Breakup): 2009
Market Size of Farm Equipments-Geographical Breakup: 2009
Global Tractor Sales (2008-2015E)
Geographical Segmentation of Global Tractor Sales - Volume (2009)
Tractor Sales in Europe (2008-2014E)
Tractor Sales in France (2006-2009)
GDP at Factor Cost- India (Q1FY09 - Q1FY11)
Indian Tractor Market by Value (2004-05 to 2014-2015E)
Agricultural Sector GDP growth rate %- India (FY06-Q1 FY11)
Tractors Production in India (FY01- FY10)
Sales of Tractors in India (FY02 - 9M FY11)
Exports of Tractors in India (FY02 - FY10)
Market Share of Various Farm Equipments v/s Tractors in India: 2009
State Wise Breakup of Sales of Tractors in India: (9M FY10 vs 9M FY11)
Region Wise Breakup of Indian Tractor Industry (FY06-FY10)
Tractor Sales Across Indian States: (9M FY10-9M FY11)
Tractor Sales by Power Category: (FY07-FY10)
Tractor Sales by Power Category: (Q1 FY10-Q1 FY11)
Growth of food grain production in India (FY05- FY10)
India- Production of Rabi and Kharif Crop Production (FY01-FY10)
India's Agri Imports and Exports (2005-06 to 2009-10)
Key Agri Products Exported By India (2009-10)
Total Area under Cultivation (1960-61 to 2009-10)
Trend in Agricultural Credit (FY01-FY10)
Trend in State-wise Tractor Sales in India (FY10)
Exports of Tractors in India (FY02 - FY10)
Total Construction Spend (FY08-FY11)
Construction Spend In Infrastructure- India (FY10P)
Construction Spend In Industrial Segments- India (FY10P)
Forecast of Tractor Sales in India (FY09-FY16E)
Forecast of Tractor Production in India (2009-2020E)

List of Tables

World's Region-wise Agricultural Equipment Growth Rate: 2000-10
MSP per Quintal for Major Crops (FY06 vs FY10)
Tractor Manufacturing in India - Foreign Collaborations
Average Tractor Prices in India
Custom duty charged on different tariff tractor items
Excise duty charged on different tariff tractor items
Major Recent Collaborations with Indian Manufacturers