New Delhi, Dec. 15: A 24 per cent surge in domestic tractor sales this year has kindled an interest both among global manufacturers to enter India as well as local players to expand.
The domestic tractor market, which saw negative growth last year, not only bounced back in 2013 on the back of timely and ample monsoon but also witnessed a boom. This has prompted local firms to offer better products and encouraged foreign companies to invest.
The tractor market stood at 5.25 lakh units last fiscal and is expected to cross 6 lakh units in this financial year.
Besides good monsoon, many attribute this growth to the government’s rural development projects and healthy credit availability.
“The revival in demand from the farm segment has been led by timely and adequate monsoon precipitation, higher MSPs (maximum selling price) and pent-up demand of last 18 months,” said Kumar Bimal, spokesperson and VP (marketing) Sonalika Tractors.
“Long-term industry drivers also continue to remain favourable. The government remains committed towards rural development and agri-mechanisation besides other factors such as scarcity of farm labour, healthy credit availability, moderate penetration and shortening the replacement cycle that continue to encourage the demand for tractors.”
He said a lot of private banks and NBFCs had become active in tractor financing. Customers are also increasingly using kisan credit cards.
Encouraged by the growth sales, Italian farm equipment maker Same Deutz-Fahr (SDF) group has introduced its premium tractor under the Lamborghini brand in India.
SDF got the ownership of the Lamborghini brand of tractors after it acquired Lamborghini Trattori, owned by the creator of Lamborghini cars — Ferruccio Lamborghini.
The company will initially bring in a 30-horsepower (hp) tractor and is planning to expand the range to up to 70-80hp. It is yet to finalise the price of the products.
“We are first introducing the 30hp Lamborghini tractor in India. This will be imported from our plants in Europe. We are testing the market response with this product and will see which model will be commercially launched,” SDF India managing director and CEO Bhanu Sharma said.