M&M unveils a/c cabin tractors in UP market

Automotive major Mahindra & Mahindra (M&M) today unveiled its new range of tractors in the Uttar Pradesh market.

For the first time, a company has launched a brand of tractors, which could be fitted with a/c cabins on demand.

Presently, tractors fitted with a/c cabins are popular in Punjab, where average tractor use is higher due to big land holdings.

The new tractor brand, Arjun Novo is priced (ex-showroom Lucknow) at Rs 6.80 lakh (52 Horsepower) and Rs 7 lakh (57 HP). The a/c cabin option would cost about Rs 9 lakh, M& M senior VP (sales - farm equipment sector) Bharatendu Kapoor told Business Standard here.

He said Arjun Novo offered best in class lift capacity of 2,200 kg for higher haulage with superior fuel efficiency and torque.

The company claims to have invested Rs 300 crore towards research and development of the new product.

While, Novo was launched recently at the Chennai plant, Lucknow marked the first regional launch pad. It would be launched at seven other regions in coming days.

The UP tractor market is slowly graduating to higher HP capacity in keeping with pan-India trend due to growing mechanisation and higher farm incomes.

Last year, almost 98,000 tractors were sold in UP. M&M is the market leader in UP tractor space with over 35% pie. The domestic tractor market size is over half-million units per annum.

Meanwhile, the rising usage of tractors for non-agricultural purposes has been stoking the sales of tractors.

Apart from farm, tractors are deployed in sand mines, brick kilns, road making, ferrying passengers etc. This keeps the tractors occupied throughout the year and results in extra income to the owner during non-farming seasons.

This trend started 10-12 years back and the non-farm usage of tractors is estimated at 40%.