SAS Motors set to launch 4 tractors

SAS Motors, maker of the most economical tractor in the country, is set to begin the incubation production of four of its prototype tractors in the next two months.

This in anticipation of an approval from the Ministry of Agriculture's testing authority, Central Farm and Machinery Training and Testing Institute (CFMTI &TI), Budni, Madhya Pradesh.

Having tested the rural markets with the national launch of Angad 240-D, its 22 HP tractor, SAS Motors plans to bring an entire range of low-cost tractors and farm implements in the next two years.

In the pipeline is a 35 HP tractor, a no-frills manual 22 HP tractor, a power tiller tractor for farming in the hilly regions and a transport tractor with customised trolleys in the next two months and a four-wheeler tractor with an in-built cargo box subsequently in the year.

The incubator models would be produced at the company's main production plant in Baramati, Pune which has a capacity of 60-90 tractors per day depending on availability of manpower. Its other facilities in Kolkata and Bhopal have a capacity of 30 tractors per day where production of the new tractors would be considered at a later stage said company officials.

Till now close to 85 per cent of tractor parts and components were being imported from Laiyang SAS Motors in China, an acquisition of SAS motors. However, the company has now started producing tractor components in-house and has brought down its component imports to 60 per cent. It is planning to produce a larger percentage of tractor components in its existing facilities in the coming few months.

Ahead of its planned launches, the company has begun writing to various departments of the central government and banks to re-consider their policy of being reluctant in giving loans for purchasing tractors to farmers who have lesser handholding.

"The limiting factor for financing tractors is that farmers with less than four acres of irrigated land and eight acres of unirrigated land are not provided loans by banks. This disqualifies more than 70 per cent of the farmers in the country," said Ravindra Kumar, MD, SAS Motors.

Banks have had a norm of consulting Nabard before they disburse loans to farmers for purchasing tractors which makes the process quite long and cumbersome, he added.

The company reportedly sells around 350-400 units a day and is expecting sales of 3,000 tractors a year on the back of the launch of the new products. Its 22 HP tractor will remain to be priced at Rs 99,000 and costs of the new models are expected to be competitively priced at 30-40 per cent lower than market prices.