THE INDIA TRACTOR MARKET SIZE IS VALUED AT 614.5 THOUSAND UNITS IN 2021 AND IS EXPECTED TO GROW AT A CAGR OF 5.78% TO REACH 910.8 THOUSAND UNITS BY 2027.

THE INDIA TRACTORS MARKET RESEARCH REPORT INCLUDES SIZE, SHARE, TRENDS ANALYSIS, COMPETITIVE LANDSCAPE, AND GROWTH POTENTIAL BY

  • Horsepower
    • Less Than 20 HP,
    • 20-40 HP
    • 41-60 HP
    • 61-100 HP
    • Above 100 HP
  • Drive Type
    • 2-Wheel-Drive
    • 4-Wheel-Drive
  • Zone
    • East
    • South
    • North
    • West

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Most Exhaustive Report

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192 Pages

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61 Tables

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56 Charts

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4 Regions

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1 Countries

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17 Companies

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3 Market Segment

INDIA TRACTORS MARKET REPORT SCOPE

Report Attribute Details
Market Size (Volume) 910.8 THOUSAND UNITS (2028)
CAGR 5.78 % (2022-2028)
LARGEST SEGMENT BY HORSEPOWER 41-60 HP TRACTORS
LARGEST SEGMENT BY DRIVE TYPE TWO-WHEEL-DRIVE TRACTORS
LARGEST SEGMENT BY REGION NORTHERN INDIA
BASE YEAR 2021
HISTORIC YEAR 2019-2020
FORECAST YEAR 2022-2028

MARKET OVERVIEW

The India tractor market size was valued at 614.5 thousand units in 2021, and it is expected to reach 910.8 thousand units by 2028, growing at a CAGR of 5.78% during the forecasted period.
The focus on agricultural mechanization in developing countries, rising demand for tractors, and the growing sense of accurate farming will boost India's demand for technologically advanced tractors. India constitutes a significant figure in the tractor market share in the world.

There has been a significant increase in precision farming in India, which is a good sign for the Indian agricultural tractor market . Precision farming is crucial, involving the use and transformation of structured data to provide operational agricultural insights that can effectively save resources and labor and lead to higher productivity. Several OEMs are shifting focus from matured markets of the northern region to underpenetrated southern region states. The Indian tractor market is currently growing, and manufacturers are looking for capacity augmentation in the country.

KEY DEVELOPMENTS IN THE MARKET

  • There is an increasing presence of agriculture-focused NBFCs in the country. These corporations enable small and medium-scale farmers to buy agriculture machinery for their farms on credit, driving the farm tractor market in India.
  • Women in the country are emerging in several roles such as laborers, cultivators, and agri- entrepreneurs, driving the tractor industry in India.
  • Growth in agricultural productivity and exports in the country empowers farmers to invest in agricultural machinery in India. This will help drive the tractor industry in India.
  • The increasing adoption of precision farming is driving the Indian agricultural tractor market share. A new pay-per-hour type of custom hiring is emerging in the tractor business, fuel tractor growth. This will promote the key factors influencing the agriculture sector while benefiting farmers.
  • The demand for high-power tractors mainly comes from large farmers and government institutions focusing on the tractor rental market.

INDIA TRACTOR MARKET TRENDS & GROWTH ENABLERS

Increasing Popularity of Remote Monitoring Technology in India Tractor Market

A new frontier of innovation is emerging as a combination of agriculture with digital technologies, opening various paths to a smart agricultural future. For instance, in early 2018, New Holland announced a self-driving tractor. With self-driving and GPS-enabled tractors, farmers can program routes to navigate the field. Self-driving or autonomous tractors would help farmers reduce labor hours. However, there is an enormous potential for data monitoring in the product.

Increasing Financial Support to Farmers through Loans and Subsidies

The government of India has launched several policies and missions, which are targeted to help farmers by providing them with financial assistance, better infrastructure, competitive crop prices, loan waivers, and subsidies. The government has also been keen on improving the current state and adopting farm mechanization in India. Currently, the farm mechanization rate is close to 40% in India, which is the lowest considering the role and importance of agriculture for the country.

MARKET SHARE & SEGMENTS

India Tractor Market Share by HP

The 41-60 HP Segment has Generated the Highest Sales

The increased use of tractors in the power range of 41-60 HP is due to their ability to effectively carry out all tasks in the field, including soil preparation, irrigation, weeding, harvesting, and haulage. These farm tractors have the power to perform the required farming tasks and are also used in several other ways, such as operating generators for irrigation and running both company and domestically-made harvesters and threshers. The labor shortage and reducing agriculture production costs have triggered the demand of this segment in the Indian market.

2WD Tractor Dominated the Indian Market

Ease of driving and maneuverability during light loads and plain fields are major factors boosting the demand for two-wheel-drive tractors. Older farmers majorly use 2WD tractors as they are skeptical about using new machines and are more comfortable with traditional 2WD tractors than 4WD tractors. Popular brands including Kubota, John Deere, New Holland, and TAFE are the preferred choices among farmers in the 2WD segment in India. India has many small farmers, with an average farm size of 3.6 ha/farm. For this reason, farmers prefer to own small and cost-efficient machines, which positively impacts the 2WD segment.

Diversifying Product Portfolio is the Need of the Hour

  • From a demand perspective, vendors dependent purely on a single product category or on one or two end-users are expected to face more challenges. The need of the hour is to diversify their product portfolio.
  • In terms of units sold, Mahindra and TAFE were the top-selling tractor brands in India.
  • Mahindra has acquired two companies, Hisarlar and Erkunt Traktor Sanayii, to gain access to the farm equipment market and expand to European countries by enhancing production capabilities in Turkey.
  • Vendors must distinguish their products and service offerings through a clear and unique value proposition. Otherwise, they may not survive the highly competitive Indian agriculture tractor market.
  • As the scope of farm mechanization has started to include other mounted and self-propelled agricultural machinery, the sale of tractors in the developed market is likely to remain stagnant if not decline.

Northern India Leads the Country in the Adoption and Penetration of Farm Mechanization Practices

Punjab has the highest penetration and adoption of modern agriculture equipment. Uttar Pradesh closely follows the mechanization rate and leads in the number of tractors sales in India in 2020-21.

In the western zone, Madhya Pradesh is emerging as a potential market for new tractors and advanced agriculture tools. This can be attributed to the fact that the state has achieved over 14% growth in agriculture. The penetration of tractors and agricultural implements is significantly less in north-eastern states. The north-eastern region, a group of seven states, has Assam as a leader in the number of new tractor sales and leads the other six states by a hefty margin.

Frequently Asked Questions

What is the growth rate of the India tractor market in the forecast period?

The growth rate of the India tractor market in the forecast period is 5.78%.

Who are the key players in India agricultural tractor market?

The key players in India agricultural tractor market are Mahindra Tractors, TAFE, Escorts, International Tractors, Deere & Company, and CNH Industrial

What are the drivers of the growth of the tractor industry in India?

Growing demand for autonomous tractors, farm mechanisation, and increasing precision farming adoption is driving the tractor industry's growth in India.

Which type of agricultural tractor is most sold in India?

Two wheel-drive tractors dominated the sales of agricultural tractors in India.

Which region has the highest tractor sales in India ?

North region has the highest tractor sales in India.

What is the estimated valuation for the agricultural tractors market in India in 2028?

The estimated valuation for the agricultural tractors market in India in 2028 is to reach a volume of 910.8 thousand units.

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The India agricultural tractor market size witnessed shipments of 614.5 thousand units in 2021. The shipments are expected to reach 910.8 thousand units by 2028, growing at a CAGR of 5.78%

The following factors are likely to contribute to the growth of the India agricultural tractor market-

  • Increasing Focus on Remote Monitoring Technology in Tractors
  • Growing demand for autonomous tractors
  • Growing farm mechanization
  • Increasing adoption of precision farming
  • Augmented Financial Support to Farmers Through Loans and Subsidies

Base Year: 2021

Forecast Year: 2022-2028

The study considers a detailed scenario of the present India agricultural tractor market and its market dynamics for 2022−2028. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.

Key Vendors

  • Mahindra Tractors
    • Business Overview
    • Product Offerings
    • Key Strengths
    • Key Strategies
    • Key Opportunities
  • TAFE
  • Escorts
  • International Tractors (Sonalika)
  • Deere & Company
  • CNH Industrial

Other Prominent Vendors

  • SDF
  • Business Overview
  • Product Offerings
  • Kubota
  • Action Construction Equipment (ACE)
  • Indo Farm
  • Captain Tractors
  • Force Motors
  • VST Tillers Tractors
  • Preet Group
  • Standard Corp.
  • Yanmar
  • AGCO

Segmentation by Horsepower

  • Less Than 20 HP
  • 20-40 HP
  • 41-60 HP
  • 61-100 HP
  • Above 100 HP

Segmentation by Drive Type

  • 2-Wheel-Drive
  • 4-Wheel-Drive

Segmentation by Region

  • Eastern India
  • Southern India
  • Northern India
  • Western India

1 Research Methodology
2 Research Objectives
3 Research Process

4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.2 Base Year
4.3 Scope of The Study

5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation

6 Market at a Glance
7 Introduction
7.1 Overview
7.2 India’s Agricultural Incentives
7.3 Farming Scenario of India
7.4 Advantage India
7.5 Import and Export Analysis
7.6 Subsidy to Farmers in India for Selected Machinery
7.7 Cropping Intensity and Land Holding Structures
7.8 Role of Tractors in The Indian Agriculture Sector
7.9 Technological Advancements
7.10 Impact of Covid-19 On the Indian Agriculture Sector


8 Market Landscape
8.1 Market Overview
8.2 Market Size & Forecast
8.3 Five Forces Analysis

9 Horsepower Segmentation
9.1 Market Snapshot & Growth Engine
9.2 Market Overview
9.3 Less Than 20 HP
9.4 20-40 HP
9.5 41-60 HP
9.6 61-100 HP
9.7 Above 100 HP

10 Drive Type
10.1 Market Snapshot & Growth Engine
10.2 Market Overview
10.3 2-Wheel-Drive
10.4 4-Wheel-Drive


11 Zone Segmentation
11.1 Market Snapshot & Growth Engine
11.2 Market Overview
11.3 North Zone
11.4 South Zone
11.5 West Zone
11.6 East Zone

12 Market Opportunities & Trends
12.1 Increasing Focus on Remote Monitoring Technology in Tractors
12.2 Growing Farm Mechanization
12.3 Increasing Adoption of Precision Farming

13 Market Growth Enablers
13.1 Augmented Financial Support to Farmers Through Loans and Subsidies
13.2 Growth in Agricultural Productivity and Exports
13.3 Migration to Cities Leading to Labor Shortage
13.4 Socio-Demographic Changes in India

14 Market Restraints
14.1 Lack of Awareness of The Latest Technologies in Agriculture
14.2 Swelling Demand for Used and Rental Tractors
14.3 Marginal and Fragmented Agricultural Farmlands

15 Competitive Landscape
15.1 Competition Overview
15.1.1 Brand Loyalty
15.1.2 Sales and Exports

16 Key Company Profiles
16.1 MAHINDRA
16.2 TAFE
16.3 ESCORTS
16.4 INTERNATIONAL TRACTORS LTD. (SONALIKA GROUP)
16.5 DEERE & COMPANY
16.6 CNH INDUSTRIAL

17 Other Prominent Vendors
17.1 SDF
17.2 KUBOTA
17.3 ACE
17.4 INDO FARM
17.5 CAPTAIN TRACTORS
17.6 FORCE MOTORS
17.7 VST TILLERS TRACTORS
17.8 PREET GROUP
17.9 STANDARD CORP.
17.1 YANMAR
17.11 AGCO

18 Report Summary
18.1 Key Takeaways
18.2 Strategic Recommendations

19 Quantitative Summary
19.1 Market by Horsepower
19.2 Market by Drive Type
19.3 Market by Zones

20 Appendix
20.1 Abbreviations

LIST OF EXHIBITS
Exhibit 1 Segmentation of India Agriculture Tractor Market
Exhibit 2 Market Size Calculation Approach 2021
Exhibit 3 Indian Economy Overview
Exhibit 4 India: Crop Production as Ratio to World Production, 2020
Exhibit 5 Growth Opportunities in India
Exhibit 6 India – Imports and Exports of Tractors 2019
Exhibit 7 India Agriculture Tractor Historical Exports Data 2006-2021 (units)
Exhibit 8 India Agriculture Tractor Top Export Destinations 2019 (% share)
Exhibit 9 Indian Tractor Market Snapshot, 2021
Exhibit 10 Technological Developments in Tractors
Exhibit 11 COVID-19 Impact on the Indian Tractor Market
Exhibit 12 Sales of Agriculture Tractors by Horsepower, 2021
Exhibit 13 Agriculture Tractor Market in India by Volume 2019–2028 (Thousand Units)
Exhibit 14 Five Forces Analysis 2021
Exhibit 15 Incremental Growth by Horsepower 2021 & 2028
Exhibit 16 Agriculture Tractor Market in India by Horsepower 2019–2028 (Thousand Units)
Exhibit 17 India Agriculture Tractor Market, Segmentation by Horsepower 2021 & 2028 (% Share)
Exhibit 18 Less Than 20 HP Agriculture Tractor Market in India 2019–2028 (Thousand Units)
Exhibit 19 Less Than 20 HP Market in India by Zones 2019-2028 (% Share)


LIST OF TABLES
Table 1 Key Caveats
Table 2 Currency Conversion 2015−2021
Table 3 India Agriculture Tractor Market Exports as Percentage Ratio to Total Exports 2013-2019
Table 4 Land Holding Structures in India, 2020
Table 5 India Tractor Market Production, Exports, and Domestic Sales by Volume 2018-2021
Table 6 Less Than 20 HP Market in India by Zones 2019–2028 (thousand units)
Table 7 20-40 HP Market in India by Zones 2019–2028 (thousand units)
Table 8 41-60 HP Market in India by Zones 2019–2028 (thousand units)
Table 9 61-100 HP Market in India by Zones 2019–2028 (thousand units)
Table 10 Above 100 HP Tractor Market in India by Zones 2019–2028 (thousand units)
Table 11 2-Wheel-Drive Tractor Market in India by Zones 2019–2028 (thousand units)
Table 12 4-Wheel-Drive Tractor Market in India by Zones 2019–2028 (thousand units)
Table 13 North Zone India Tractor Market by HP 2019-2028 (thousand units)
Table 14 North Zone India Tractor Market by Wheel Drive 2019-2028 (thousand units)
Table 15 South Zone India Tractor Market by HP 2019-2028 (thousand units)
Table 16 South Zone India Tractor Market by Wheel Drive 2019-2028 (thousand units)
Table 17 West Zone India Tractor Market by HP 2019-2028 (thousand units)
Table 18 West Zone India Tractor Market by Wheel Drive 2019-2028 (thousand units)
Table 19 East Zone India Tractor Market by HP 2019-2028 (thousand units)
Table 20 East Zone India Tractor Market by Wheel Drive 2019-2028 (thousand units)

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