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Mahindra posts 22% growth in domestic annual sales in tractors

mahindra & mahindra tractors

Mahindra Group has posted a growth of 22% by accomplishing sales of over 3 Lakh tractors in FY2018. The company has sold 304,019 units in the domestic as well as 319,468 exports in the fiscal year 2018. Mahindra holds over 42% market share in the Indian tractor market.

India: The Farm Equipment Sector (FES) of Mahindra & Mahindra Ltd.’s has accomplished sales of over 3 lakh tractors in FY18. This has enabled the company to achieve its highest ever annual tractor sales. According to a company statement, a growth of 22% has been posted in the domestic market, during the FY2018.  

In terms of volume, the largest player Mahindra has sold 304,019 units in the domestic market during Fiscal Year 2018 and 319,468 units in total i.e. domestic as well as exports in FY18, posting a growth of 22% and 21%, respectively. At present, Mahindra holds 42.9% market share in the Indian Tractor Market.

The President for Farm Equipment Sector, Mahindra & Mahindra commented that the product portfolio of the company is based on a thorough understanding of a farmer’s requirements and the need for creating an effective value proposition. Since the beginning, Mahindra & Mahindra has focused on empowering FarmTech Prosperity by Technology-driven innovation and quality excellence. The Company has achieved highest ever tractor sales in a year due to their channel strength and a wide-ranging product portfolio. Mahindra is aiming to offer a wide range of farming solutions other than selling tractors.

Mahindra had launched the JIVO - a new age, small tractor platform in the sub 25HP category, suitable for row crop and horticulture farming in April 2017, and Swaraj 963FE in February 2018, which is a higher power tractor in the 60-75 HP category.

The past launches of the YUVO in April 2016 and the NOVO in August 2014 have significantly contributed to the company’s growth. Presently, Mahindra has a diverse portfolio in tractors ranging from 30 HP up to 75 HP and spanning basic, advanced and smart tractors. The entire range of products helps serve the diverse needs of farmers - from land preparation to harvesting as well as post-harvesting requirements.

According to TechSci Research, India is the largest tractor market, globally. Mahindra & Mahindra has emerged as the market leader not only in India, but globally also. The Tractor Market globally as well as domestically, will witness robust growth in the coming years due to ever increasing population that has inflated the demand for agricultural products. The growth in the tractor market will also drive the market for farm’s tires in India. Factors such as consumer inclination towards small-sized tractors, penetration of autonomous tractors, increasing tractor sales and exports, rise in mechanized farming, usage of tractors in horticulture, floriculture are the major drivers for the country’s farm tire market.

Moreover, as per Techsci Research, Asia-Pacific is the largest demand generating region for tractors across the globe. The region accounts for more than 60% of the global market share for tractors, owing to its large population and agricultural needs. India and China alone controlled more than 50% of the total global tractor market share in 2017.

 


Source: Techsci Research                                                                                                                                           

According to the recently published report by TechSci Research, Global Tractor Market, By Power Output (Under 40 HP, 40 HP & Under 100 HP and 100 HP & Above), By Drive Type (2-Wheel Drive Vs. 4-Wheel Drive), By Application, By Region, Competition Forecast & Opportunities, 2013 – 2023”, Global tractor market registered sales of more than 1.73 million units of tractors in 2017 and the figure is forecast to reach 2.33 million tractor units by 2023. Rising global population resulting in surging demand for agricultural products, increasing consumer inclination towards small-sized tractors, and penetration of autonomous tractors are among the major factors expected to boost tractor sales, globally, during the forecast period. Moreover, easy availability of financing options, rising labor cost and increasing investments by leading agricultural machinery manufacturers such as Mahindra & Mahindra, John Deere, Tractors & Farm Equipment Limited, etc., in their tractor product lines would positively influence the global tractor market in the coming years.

According to the recently published report by TechSci Research, Global Tractors and Trailers Market, By Tractor Type (Industrial, Agriculture and Others), By Horsepower (Below 40 HP, 40-100 HP, above 100 HP), By Trailer Type (Open trailers, Flatbed Trailer, Lowboy Trailers, others), By Company Forecast & Opportunities, 2012-2022, Global Tractors and Trailers market is expected to grow at a robust CAGR during the forecast period on the back of growing demand for food, growing population and growing demand for agriculture production. Based on tractor type, the global tractor market is segmented as Industrial, agriculture and others. Agriculture tractor dominates the tractor market and is expected to maintain its dominance during the forecast period. Some of the major players operating globally in Tractors and Trailers market are Escorts Group, Mahindra Tractors, John Deere, Massey Ferguson, Sonalika Tractors, New Holland, CNH Industrial, Kubota, ACE Tractors, Captain Tractors, Force Motors, Mars Group etc.

 


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