Tractor-makers change segment focus

Perturbed over the negative growth in sales in the domestic market, tractor manufacturers are focusing on 50 horsepower (HP) and more and 20 HP and less, which is growing at the rate of 15 per cent and 40 per cent, respectively.

While the volume is also low in below-20 HP and above-50 HP category, manufacturers are of the view that it will pick up in the near future.

In 2013-14, total tractor sold in the domestic market were 634,151 units compared with 526,912 in 2012-13. This year, the industry has witnessed negative growth in the first seven months of the current fiscal year compared with the corresponding period of the last year, owing to the deficit rain. According to the Tractor Manufacturer Association(TMA) data, the total tractor sold in domestic market during April-Oct 2014 was 390,099 units compared with 402,707 units during the corresponding period last year.

Speaking to Business Standard, S Sridhar, chief executive officer, Escorts Agri Machinery said, "The total Industry volume is still low as it 24,000 units annually for 20 HP, while for above-50 HP it is 90,000 units. While less than 20 HP segment is growing at the rate of 40 per cent, whereas the above 50 HP segment is growing at the rate 15-16 per cent."

Considering this, the major manufacturers are eyeing both the categories especially 50 HP segment where the margins are better.

Escorts Ltd, the leading tractor manufacturer recently showcased its European version of its world-class new Farmtrac 6050 4x4, a part of Heritage tractor series which offers safe haulage operations even in extreme conditions with extra power, style and comfort in 50 HP category. It has already received massive trade esquires in Europe and the company is eyeing the same from market in India.

He added,"Escorts believes that Indian farmers deserve the world's best farm mechanization solutions and the 4x4 technology is a part of that. Developed world has 4x4 tractors ruling 80% of the market and we do not find any reason why should India be any different.." It has also plans to target the 20 HP and less than segment, basically helping farmers transitioning to the first mechanisation of farms.

Similarly, Sonalika also recently launched Worldtrac 60Rx, in 60HP category. the company claims that every third tractor sold in the country in 50+ HP is a Sonalika. It is also focusing on 20 HP segment.

Also, Mahindra & Mahindra, which claimed to be a leader in sub 60HP tractors, launched Arjun Novo is a 57HP product and replaces an existing product with higher features but priced little higher than the previous model. Mahindra expects that the product will be game changer for the company. Mahindra has also range tractors in sub 20 HP segment.