BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India Tractor Market size at USD 1,935.72 million in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the India Tractor Market size to expand at a CAGR of 5.55% reaching a value of USD 2,676.82 million by 2030. The Tractor Market in India is propelled by the government’s supportive initiatives focused on rural development. India holds a prominent position in the global tractor market, consistently selling between 600,000 to 700,000 tractors annually from 2016 to 2021. Two-wheel drive tractors outpace four-wheel-drive counterparts in popularity within the Indian market. Domination of the agriculture tractor market is evident among indigenous Indian Original Equipment Manufacturers (OEMs), including Mahindra & Mahindra Limited, TAFE, International Tractors Ltd (Sonalika), and Escorts Limited. International players, such as Deere & Company and CNH, have also successfully entered the market and established a significant presence. In addition, the declining availability of farm labor and the emergence of innovative business models like custom hiring solutions for tractors make India an attractive market for tractor manufacturers. The government’s support, including subsidies under the mechanization component of the agriculture macro-management scheme, further contributes to the sector’s growth. Notably, a 25% subsidy, limited to INR 30,000, is provided for the purchase of tractors with up to 35 PTO HP. With sustained government backing and a focus on enhancing farm mechanization and crop production, the agricultural tractor sales are expected to rise in India during the period in analysis.
Opportunity – Seasonal labor shortages to drive further mechanization of agricultural production
The India Tractor Market experiences a surge due to seasonal labor shortages compelling farmers to mechanize their operations. Traditional growth predictors tied to monsoons are disrupted, with growing rural labor deficits becoming a pivotal factor. Acute shortages in major states including Kerala, Punjab, and Tamil Nadu, as migrant workers stay back under the Mahatma Gandhi Rural Employment Guarantee Scheme, have led to increased wages. Farmers, responding to rising labor costs, are investing in tractors, resulting in a significant boost in tractor sales. This trend highlights a shift toward mechanization in rural India and underscores the tractor industry’s resilience and growth.
Impact of COVID-19 on India Tractor Market
COVID-19 pandemic had a positive impact on the India Tractor Market. It is primarily due to heightened demand for agricultural produce including cereals, vegetables, and fruits. The surge in demand for these essential food items resulted in an increased need for mechanized farming, leading to a boost in tractor sales. As the pandemic unfolded, the agricultural sector emerged as a resilient force, driving the tractor market in the country. The unexpected positive effect showcased the vital role played by tractors in meeting escalating food demands during challenging times. The pandemic underscored the significance of mechanization in sustaining agricultural productivity and responding to dynamic market needs in the India Tractor Market.
Sample Request @ https://www.blueweaveconsulting.com/report/india-tractor-market/report-sample
India Tractor Market
Segmental Information
India Tractor Market – By Application
By application, the India Tractor Market is divided into Agriculture, Construction, and Mining & Logistics segments. The agriculture segment holds the highest share in the India Tractor Market by application. With approximately two-thirds of India’s population dedicated to agriculture, tractors have become indispensable in the sector. Tractors contribute essential efficiency and productivity, enabling the country to compete internationally in agricultural activities. Tractors serve as a cornerstone in modernizing and optimizing farming practices, consolidating the agriculture segment’s prominence in the India Tractor Market.
India Tractor Market – By Region
Regionally, the India Tractor Market is segmented as North India, South India, East India, and West India. The North India and West India regions dominate the India Tractor Market, attributed to the presence of manufacturing units and significant agricultural production. Punjab, Haryana, and Uttar Pradesh follow suit, with state governments actively promoting tractor adoption to stimulate market growth. A pivotal factor in the industry’s expansion is the influence of normal monsoons, fostering production and bolstering farmers’ income, thereby driving increased tractor demand in key states like Maharashtra, Madhya Pradesh, Bihar, Karnataka, Gujarat, Andhra Pradesh, and Uttar Pradesh. In the Southern region, sustained growth, particularly in Andhra Pradesh, Tamil Nadu, and Telangana, outpaces other regions, propelled by government support programs and improved rural sentiments. Meanwhile, the Eastern region experiences robust volume growth, aided by government initiatives for farm mechanization. In contrast, the Northern region, including key markets like Uttar Pradesh, faces challenges in keeping up with nationwide growth, with certain states such as Rajasthan and Punjab struggling due to weak haulage and replacement demand.
Competitive Landscape
Major players operating in India Tractor Market include Force Motors Limited, CNH Industrial N.V., Escorts Limited, HMT Limited, Deere & Company, V.S.T. Tillers Tractors Ltd, Mahindra & Mahindra Ltd, and Sonalika International Tractors Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
Contact Us:
BlueWeave Consulting & Research Pvt. Ltd
+1 866 658 6826 | +1 425 320 4776 | +44 1865 60 0662
