India Tractor Market is Expected to Reach $12.7 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, “India tractor market by Power Output, Drive Type, and Application:  Opportunity Analysis and Industry Forecast, 2021–2030,” The India tractor market size was $7.5 billion in 2020 and is expected to reach $12.7 billion by 2030, registering a CAGR of 5.1% from 2021 to 2030. In 2020, West India dominated the India tractor market accounting for over one-third share of the market.

Tractor equipment aids in rise in agricultural productivity with less time consumption. In addition, tractor requires lower effort inputs, thereby reducing the demand for human labor on farms. This not only saves time of operation but also saves the cost incurred on manpower. In addition, advancements in machine technologies promote the growth of the India tractor market.

Rise in demand for tractors, owing to higher kharif sowing, plough, and plating application in agricultural activities, drive the growth of the India tractor market. Easy availability of finance, and high usage of tractors in farming applications such as row crop, orchard, and garden, drive the growth of the India tractor market.

An advancement in Indian agriculture sector with new revolutionary farming machinery such as tractors, drive the growth of the India tractor market. For instance, in 2018, Mahindra & Mahindra Ltd launched a new driverless tractor in India. Similarly, rise in innovations and advancements in tractor equipment, fuels the growth of the India tractor market.

COVID-19 has already affected the sales of the India tractor market in 2020, and is expected to hamper the growth of the India tractor market. The major demand for tractor was badly affected due to the spread of COVID-19 virus. Further, the disruption of supply chains hampers the growth of the India tractor market. For instance, the net sales of Mahindra & Mahindra Ltd. declined by 15.0% from 2019 to 2020. 

However, lack of information about efficient tractor among farmers in India, is anticipated to restrain the growth of the India tractor market. Furthermore, government initiative for assisting and providing subsidy to farmers with low interest rates, is anticipated to provide lucrative opportunities for the growth of the India tractor market. For instance, many government initiatives such as PM Kisan Tractor Yojana, and Telangana Yantra Laxmi Scheme in India are providing 20% to 50% subsidy on tractors to farmers.

The India tractor market is segmented into power output, drive type, application, and region. Depending on power output, the market is categorized into less than 30 HP, 30-50 HP, 50-100 HP, and more than 100 HP. The 30-50 HP segment dominated the market in 2020. By drive type, the market is bifurcated into 2-wheel drive and 4-wheel drive. The 2-wheel drive segment dominated the market in 2020. On the basis of application, it is divided into agriculture, construction, and mining & logistics. The agriculture segment dominated the market in 2020.

Region wise, the India tractor market is analyzed across North India, South India, West India, East India, and Central India. West India dominated the market in 2020.

Key companies profiled in the report include Mahindra & Mahindra Ltd., Escorts Limited, CNH Industrial N.V., Tractors and Farm Equipment Ltd, Sonalika International Tractors Ltd, Deere & Company (John Deere India Private Limited, HMT Limited, Force Motors Limited, and Standard Corporation India Limited.

Key Findings Of The Study

• By power output, the 30-50 HP segment was the highest revenue contributor in 2020.
• By drive type, 2-wheel drive segment was the highest revenue contributor in 2020.
• By application, agriculture segment was the highest revenue contributor in 2020.
• Region wise, West India generated the largest India tractor market share in 2020.
• The report provides an extensive analysis of the India tractor market trends and emerging opportunities of the market. 
• The India tractor market forecast analysis from 2021 to 2030 is included in the report.