Indian Tractor Market Shows an Amazing Growth Rate
Posted November 27, 2012on:
Even at a time when the automotive industry experienced lull order due to rising fuel prices, the Indian tractor Industry remained bullish in FY12 with a high volume growth. This is due to a strong south- western monsoon which helped in a good village collect, non-urban assets for plants and credit accessibility drive by banks. The Southeast and western areas performed well while the Southeast and central areas had low-key grown. The northern region remains the largest tractor market in India. Tractor industry plays a significant element as a farming sector has a major part in India’s Gross domestic product.
The major players in this industry include Mahindra and Mahindra (M&M), Tractors and farm equipments (TAFE), Escorts, L&T-John Deere and International tractors limited. It is a unique market where both brought in skills and local commercial technology have designed towards conference the common nationwide requirements of the nation. The problems of farm owners have been destroyed by the use of a tractor for farming requirements. Tractor is an extremely resourceful piece of machinery having a large number of uses, used in agriculture both for land retrieval and for carrying out various crop cultivation and also used for carrying out a variety of operations related with raising the crops by connecting suitable tools and to provide the required energy for performing different crop production operations involved in the production of agricultural crops. The Native Indian Tractor Industry’s amazing success shows the maturation and passion of tractor producers and the different guidelines implemented by the Govt to assist on it to efficiently meet the demand. Uttar Pradesh is the major tractor market in our country. One out of every four tractor is being purchased here.
India has been exporting tractors to Sri Lanka, U.S and Nepal. Since the price of tractors is cheaper than other developed nations, India has a tremendous scope for export of tractors to the rice rising nations like Canada, Bangladesh & Philippines. Over a 5 decade time period, the industry expects tractor volumes to grow at CAGR of 8 – 10 percent. Despite the powerful need during F Y12, the increase of Metal and metal prices has impacted the success of the tractor producers. The demand for the domestic tractors is expected to grow for the reason that of the better credit facilities as well as the increasing earnings of the farmers. The only major hurdle in this industry would be the rising interest rate which could affect tractor sales.