2/27/13 Tractor India, Tractor in India, Tractor Industry in India, Indian Tractor Industry

www.indianmirror.com/indian-industries/tractor.html 1/4

Home

News

History

Makers of India

Geographical Features

Indian Culture

Strange Customs

Indian Dynasties

Tribes in India

Population

Religions and Beliefs

Festivals & Fairs

Indian Cuisine

Indian Crafts

Indian Arts

Indian Music

Dance Styles

Indian Names

Traditional Games

Yoga

Tourist Destinations

Indian Wildlife

Indian Industries

Ayurveda

Indian Astrology

Indian Recipes-iPhone

Shopping

Submit Press Release

Indian Calendar

Tell a Friend

Contact Us

Home > Indian Industries > Tractor Industry Search

Other Indian Industries Select Industry

+ Text -

HEADLINES: Hayden feel

INDIAN TRACTOR INDUSTRY

Size of the IndustryTractor market in India is about Rs 6000 crore. Onan average around 400000 tractors are producedand their sale is 260000

Geographicaldistribution

The tractor markets of Karnataka, Maharashtra,Tamil Nadu, and Gujarat are growing ~ 50%.

Output per annumDomestic sales - 350,000 units p.a. and Exports -

60,000 units p.a

Percentage inworld market

About 20% of world tractor production is carried outin India

Marketcapitalization

CAGR in volumes @ 10 % over past four decadeswith seasonal variations.

History

Indian Tractor Industry developed in 1945 to 1960 because of the War surplustractors and bulldozers were imported for land reclamation and cultivation in mid1940's. In 1947 Central and State Tractor Organizations were set up to develop andpromote the supply and use of tractors in agriculture and up to 1960, the demand

2/27/13 Tractor India, Tractor in India, Tractor Industry in India, Indian Tractor Industry

www.indianmirror.com/indian-industries/tractor.html 2/4

promote the supply and use of tractors in agriculture and up to 1960, the demandwas met entirely through imports. In 1951 there were 8,500 tractors in use, 20,000 in1955 and 37,000 by 1960. Local production began with five manufacturers in 1961producing a total of 880 units per year. Eicher, Gujarat Tractors, TAFE, Escorts,M&M are the major tractor manufacturers.

During 1965 this had increased to over 5000 units per year and the total in use had risen to over 52000. In the year 1970 annualproduction had exceeded 20000 units with over 146000 units working in the country. From 1971 to 1980 six new manufacturerswere well established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did notsurvive. Escorts Ltd began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK. Others were HMT and PTL(SWARAJ) Total production climbed steadily to 33000 in 1975 reaching 71000 by 1980.

Credit facilities for farmers continued to improve and the tractor market expanded rapidly with the total in use passing the halfmillion mark by 1980. 1981 to 1990 A further five (Auto Tractors, Haryana Tractors, United Auto Tractors, Asian Tractors, VSTTillers) manufacturers began production during this period but only last one survived in the increasingly competitive market place.Annual production exceeded 75000 units by 1985 and reached 140000 in 1990 when the total in use was about 1.2 million. ThenIndia - a net importer up to the mid-seventies - became an exporter in the 80's mainly to countries in Africa between 1991 to 1997.

Since 1992 it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997 annual productionexceeded 255000 units and the national tractor park had passed the two million mark. India has now emerged as one of the worldleaders in wheeled tractor production. Saturation achieved in Punjab with tractor density as high as 82 per 1000 ha against Indianaverage of 12.4, world average of 17.4 and 32.1 in developed countries. Intense competition has led to rapid advances in designand quality.

Brief Introduction

Tractors are an integral part of mechanization and have a crucial role to play in

increasing agricultural productivity. By advancement in manufacturing of tractorsthere's possibility that could lead India to another green revolution.

In 1961 since tractor manufacturing in India started, the industry has grown at aphenomenal pace in the last five decades to achieve a record production of overthree lakh units per year.

In Farm Mechanization there are two major contribution one higher productivity and greater output. Tractors form an integral partof the farm mechanization and have a crucial role to play in increasing agricultural productivity. Tractor is a highly versatile pieceof machinery having a multitude of uses, used in agriculture both for land reclamation and for carrying out various crop cultivationand also employed for carrying out various operations connected with raising the crops by attaching suitable implements and toprovide the necessary energy for performing various crop production operations involved in the production of agricultural cropsspecially in India where the major occupation is Agricultrue.

Tractors are capital intensive, labour displaying used as a mode of transport, in electricity generation, in construction industry andfor haulage operation. It has now become an integral part of farm structure .The problems of farmers has been erased by theapplication of tractor for agricultural activities which swept India during the last twenty years .

Indian Tractor Industry, comparatively young by world standards has expanded at a spectacular pace during the last fourdecades. Consequently it now occupies a place of pride in India's Automobile Industry also. U.S.A., U.S.S.R. and only a fewWestern European countries exceed the current production of tractors.

India's growth is unmatched even with countries of long history of Tractor manufacturing. The Indian Tractor Industry's spectacularachievement reflects the maturity and dynamism of tractor manufacturers and the various policies adopted by the government toenable it to effectively meet the demand. It is a typical industry where both imported technology and indigenous developedtechnology have developed towards meeting the overall national requirements of the country. As per the global spotlight ontractors manufacturers in terms of volume seems to be swinging away from the USA, UK and Western and Eastern Europetowards India where growth in the number of producers and the total volume in recent years have been impressive. In India,Tractor Industry has played a vital role in the development.

Today India's gross cropped area is next only to United States of America and Russia and along with fragmented land holdingswhich has helped the country to become the largest Tractor Market in the world. But it drops to eight position in terms of totalTractor in use in the country when compared to international figures, only 3% of total tractors used all over the world . It is to benoted that while the overall automobile industry is facing recession the tractor industry is growing at 9%. About 20% of worldtractor production is carried out in our country only. The arable land in India is high as 12% of the total arable land in the world.Indian tractor market has to be viewed considering its position in the world with respect to key parameters as given below:

According to a study conducted by PHD Chamber of Commerce and Industry, since purchase of tractor involves a big investmentits demand is affected by the availability and easiness of credit. A higher availability of credit will lead to a higher demand fortractors. The tractors between the 31-40 horse power and 31-40 hp range dominate the market .The reason for medium horsepower tractors being more popular are that the major tractor demanding states like Punjab, Haryana and Uttar Pradesh haveplenty of alluvial soil which does not require deep tilling. Lately it is visualised that higher hp segment has the maximum growthpotential. Higher horse powered tractors will be the future requirement with the government intention to encourage contractfarming through the leasing in and leasing out of farm lands.

Market capitalization

2/27/13 Tractor India, Tractor in India, Tractor Industry in India, Indian Tractor Industry

www.indianmirror.com/indian-industries/tractor.html 3/4

Tractor market in India is about Rs 6000 crore. On an average around 400000tractors are produced and their sale is 260000.Uttar Pradesh is the largesttractor market in our country. One out of every four tractor is being purchased

here. One third of world's Tractor production is in India. The Total Turn Over is10000 crore and the Total investment is 8000 crore. With Employment of 28000people directly and 150000 people indirectly the Tractor population is 3000000compared to 900000 in China.

Domestic and Export Share

Regarding exports India has been exporting tractors to a number of countries, but predominantly to Srilanka ,Nepal and U.S.AHowever study reveals that exports from India are going down in the recent years .The major reason for the decline in exports oftractors from India is being the failure to find an extensive market overseas, deteriorating foreign exchange situation in Africancountries and their poor buying capacity, comparatively cheaper imports of second hand tractors by South East Asian countriesfrom developed countries and the disintegration of erstwhile U.S.S.R but also the potential export markets can be explored byIndia in the future. Since Indian tractors has the international standards by virtue of their foreign collaboration it is possible forIndia to export to more tractors to the rice and wheat growing countries like Canada, Philippines and Bangladesh.

Top leading Companies

MANUFACTURER COLLABORATOR YEAR

Eicher Tractors Ltd Gebr, Eicher Tractor. West Germany 1961

Gujarat Tractors Ltd Motokov Praha. Czechoslovakia 1963

TAFE Messey Ferguson. UK 1961

Escorts Ltd Moloimport Arazawa Zaklady Mechaniczne .Ursus Poland 1964

Mahindra And Mahindra International Harvestor. UK 1965

+Escorts Tractor Ltd Ford .U.K. 1971

Hindustan Machine Tools Motokov Praha. Czechoslovakia 1971

Kirloskar Tractors Lmt Klochner Humboldt Deutz. Germany 1974

Punjab Tractor Limited CMERI.INDIA 1974

Pittie Tractor Limited Own know how 1974

Harsha Tractor Ltd Moto Import. Russia 1975

*Auto Tractor Ltd British Leyland. U.K. 1981

Pratap Steel Rolling Mill Own knowhow 1983

Vst Tillers Mitsubishi. Japan 1983

United Auto Tractor Ltd Uzina Tractorul. Romania 1986

Asian Tractor Ltd Own know how 1989

Bajaj Tempo Ltd Own know how 1987

International Tractors Own know how 1998

Larsen And Tourbo Ltd John Deere. USA 1999

New Holland Tractor New Holland Tractors .Italy 1999

Greaves Ltd Same Deutz Fahr. Italy 1999

Latest developments

Today in India there is an increase in awareness among the farmers for the need of farm mechanization and are keen toacquire tractor with the help of credit facilities from financial institutions.Agronomists believe that there is need for more tilling due to depletion of moisture and repeated cultivation of land .It isprecisely for this reason that the demand for tractors was well maintained even during a drought period.Cost of tractors in India is the cheapest in world .The cost of a finished tractor here is as much as the cost of gear box indeveloped countries. Hence there exists tremendous scope for exports.Animal power available is too inadequate to meet power demand of our farmers. Mechanized operations are preferred toeliminate drudgery and delay, also labour shortage during harvesting increased the use of tractor.More farmers are opting for multiple cropping over last decade. Country's net cropped area had remain virtually stagnantwhile gross cropped area increased by about 4.7%. This indicate the increased popularity of multiple cropping95% of tractor sales are on credit. Credit is extended by commercial banks, state land development banks and regionalrural banks.Irrigation facilities reduce reliance on the monsoon and allow for quick yielding varieties of food grain .This reduces the

2/27/13 Tractor India, Tractor in India, Tractor Industry in India, Indian Tractor Industry

www.indianmirror.com/indian-industries/tractor.html 4/4

Irrigation facilities reduce reliance on the monsoon and allow for quick yielding varieties of food grain .This reduces thecropping cycle to 3-4 months from the traditional 5-6 months. Reduced cropping cycle require deep tilling which translatesinto higher demand for tractors.

INDIAN TRACTOR INDUSTRY AT A GLANCE IN 2011 - 2012

Indian Industries

Classified under RED category

Aluminium industry, Cement industry, Construction industry, Copper industry, Dairy

industry, Diamond industry, Fashion industry, Fertilizer industry, Film industry, Granite

industry, Health care industry, Jewellery industry, Mining industry, Oil industry, Paint

industry, Paper industry, Power industry, Printing industry, Rubber industry, Silk industry,Soap industry, Steel industry, Sugar industry, Textile industry, Tabacco industry, Zincindustry

Classified under ORANGE categoryAutomobile industry, Cotton industry, Hotel industry, Jute industry, Pharmaceutical

industry, Tractor industry, Weaving industry

Classified under GREEN category

Advertising industry, Agricultural industry, Aviation industry, Banking industry,Biotechnology industry, Biscuit industry, Chocolate industry, Coir industry, Cosmetic

industry, Cottage industry, Electronic industry, Food Processing industry, Furniture

industry, Garment industry, Insurance industry, IT industry, Leather industry, Music

industry, Mutual fund industry, Pearl industry, Plastic industry, Poultry industry, Railway

industry, Real estate industry, Shipping industry, Solar industry

INDIAN INDUSTRIES

Alphabetical List of Industries

Enivornmental List of Industries

Sectoral List of Industries

Industrial Associations of India

Submit Free press release

Astrology - Horoscope

Home || Tell a Friend || Book Mark || Back || Sitemap || Contact us || Advertise with us || || 11

All rights reserved © 1999 - 2013 www.indianmirror.com

Like 191