The tractor manufacturers of North India are gearing to meet the likely surge in the demand of tractors in the new year.
The industry that had a gloomy year owing to slowdown in the economy expects to cover up this year.
According to a senior official in Mahindra and Mahindra Swaraj Tractors, Mohali, the revision in minimum support price of commodities, overall food inflation and better yield despite the delayed and scanty rainfall had increased the disposable income of the farmers that should end up in rise in demand.
The industry that registered a sale of about 303,000 tractors last year expects to sell between 350,000 to 360,000 tractors in the doemstic market this year.
He apprised that they clocked in a growth of 35 per cent in the first three quarters of the financial year 2009-10.
HMT Tractors located at Pinjore near Chandigarh is also sanguine over the higher sales growth this year.
There is a big replacement market in the progressive states and in the rest of the states the demand is driven by the mechanisation of agriculture.
Hoshiarpur-based International Tractors Ltd (ITL, makers of Sonalika brand tractors) targets a double digit growth this year. Speaking to Business Standard, ITL Vice Chairman, A S Mittal said, “This year has been pretty good for us. We have sold 28,500 tractors during the period April, 2009 to December, 2009. So far performance is concerned, we have witnessed a growth of 21 per cent over the corresponding period last year. Further we are expecting, to be able to close this financial year with 35,000 units, posting over 20 per cent growth as compared to the previous fiscal.”
ITL manufactures various tractors of Sonalika brand between 30 hp and 90 hp, and CLASS brand between 70 hp and 90 hp. The company has manufacturing facility in Hoshiarpur and has capacity to manufacture 60,000 tractors a year.
It is worth mentioning that ITL is one of the top three tractor selling companies in India. The company also exports tractors to countries like South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria, Zambia, Senegal and Ghana. To cater to the the African market, the company has set up an assembly plant in Nigeria in collaboration with a leading Nigerian company to expand export base in African countries and has also launched tractors with co branding with leading Italian companies .
Echoing similar sentiments, Baddi-based Indo Farm Tractors & Motors Ltd Vice President, C N Dhar said, “Sales have been very good this year, as we are expecting to achieve a growth of 15 per cent in this financial year as compared to the last fiscal. Volume wise, we are expecting to sell 3,000 units by the end of this fiscal year.”
Already, the company has sold 2,500 units during the period April-December 2009, posting a growth of 15 per cent. The company manufacturers models in the range of 30 hp, 35 hp, 40 hp, 50 hp and 60 hp.