Sale of Tractors of Different Makes in India

India is mainly an agricultural country. Agriculture accounts for approximately 18 percent of India's GDP. Agriculture in India is the means of livelihood of almost two thirds of the workforce in the country and employs nearly 62 percent of the population. It accounts for 13 percent of India's exports. About 42 percent of India's geographical area is used for agricultural activity. It is therefore considered to be the vital sector of the Indian economy. Tractor industry plays an important role as agriculture sector has a major contribution to India's GDP. Tractors came to India through imports and later on were indigenously manufactured with the help of foreign collaborations. The manufacturing process started in 1961–62. Indian tractor industry is relatively young but now has become the largest market worldwide. There are currently 14 players in the industry. Mahindra & Mahindra is the leading player in the industry. Monsoon season is a key driver for sales of tractors. A series of good or bad monsoon can affect the sales. In recent years the industry has registered a good growth in sales, both domestic as well as exports. This is also partly because of the initiative of the government to boost up agriculture and agricultural machinery industry. The tractor penetration level in India is very low as compared to the world standards. Also the penetration levels are also not uniform throughout the country. While the northern region is now almost saturated in terms of new tractor sales, the southern region is still under penetrated. The medium horsepower category tractors, 31–40 hp, are the most popular in the country and fastest growing segment. This article gives an insight into the tractor industry in India, discussing sale trend during last five years. It analyzes the current sale scenario of tractors in various States of India and industry wise and horsepower-wise sale performance.