Tractor market to grow by around 12% this fiscal, says M&M

Auto major Mahindra & Mahindra expects the tractor segment in the country to grow by around 12% this fiscal on the back of a timely monsoon.

The company, which markets tractors through its Farm Equipment Sector (FES) and sells over 100 models and variants of tractors put together ranging between 15 HP to 50 HP, aims to grow more than the industry in 2013-14.

"At the beginning of the year, we expected the market to grow by around 6%. But with timely monsoon and other positive factors, we now expect the market to grow by around 12% in the current fiscal," M&M FES Chief of Marketing Sanjeev Goyle told PTI.

Asked about the growth targets set by the company for the fiscal, Goyle said: "We are targeting to grow better than the industry during the current fiscal."

Timely monsoon this year has helped in creating a positive atmosphere in the tractor market helping the industry grow, he added.

The tractor market in the country stood at 5.25 lakh units last fiscal and is expected to cross 6 lakh units in the current financial year. Mahindra has a market share of over 40% in the segment.

The company's tractor sales grew by 26% in November, Goyle said.

Earlier this year, the company commissioned a new tractor plant in Andhra Pradesh, which has has been set up with an investment of Rs 300 crore and an installed capacity of one lakh tractors per annum.

M&M currently has tractor manufacturing plants in Mumbai, Nagpur, Rudrapur, Jaipur, Mohali and Rajkot. It also has two plants each in the US and China, and one in Australia.