In an interaction with Business Standard, PTL Chairman and President of the Farm Equipment Division of Mahindra & Mahindra Anjani Kumar Choudhari said, "We have plans to roll out Mahindra Tractors in this year from the Mohali unit of PTL, which we acquired last year."
Last year PTL manufactured 28,045 tractors.
Choudhari said, "For manufacturing Mahindra tractors not much investment will be needed. Punjab Tractors has registered 78 per cent growth in the first two months of 2008-09 compared with the corresponding period of 2007-08. The company sold 5,511 tractors in April and May against 3,090 tractors last year in the same months."
On being asked about bio-diesel tractors, he said, "We have developed 5 per cent bio-diesel tractors and the trial run is going on in Maharashtra. After a successful trial run of the engine we will launch it. Further, we have plans to develop 10 per cent bio-diesel tractors after the success of the 5 per cent bio-diesel ones."
Commenting on the overall tractor market, he said, "Last year the tractor market headed south and witnessed a decline of 4.7 per cent. But this year we foresee a growth rate of 5-8 per cent. In India the availability of tractors is 11 per 1000 hectares while in International market it is 29 so there is immense potential in the tractor market," he answered when asked whether the tractor market is stagnant.
On being asked about the target for the current fiscal year, he added, "We are going to further increase our market share." Mahindra Tractors and Punjab tractors have a combined market share of about 39 per cent.
Also, he added very soon Mahindra & Mahindra will increase the prices of its tractor in view of high input costs. Already in April the company raised the prices of its tractors.
He added that the input cost has risen significantly in the recent past so taking it into consideration we planned to increase the prices of our tractor. However, he refused to comment on the amount of the increase.
