Guwahati, June 11: Auto major Mahindra & Mahindra's Farm Equipment Sector is looking to boost sale of its tractors in Assam by cashing in on the state government's thrust on increasing farm output through use of technology.

"We had experienced a 19 per cent fall in sales in the Northeast last fiscal but with the Assam government laying emphasis on agriculture and rural development this year, we expect sales to improve this fiscal," Sundeep Kathuria, area manager (Northeast), Farm Equipment Sector, Mahindra & Mahindra Ltd, told The Telegraph today.

A part of the $16.5 billion Mahindra Group, the company launched two variants of its technologically advanced tractor, Arjun Novo, here today. The tractor is the first to be designed and developed at the company's global research facility in Chennai. It can perform over 40 key farming applications, including harvesting, straw reaping, haulage and loading.

Dispur's thrust on agriculture development is evident from the two international agri-horticulture shows organised here since 2014. Chief minister Tarun Gogoi, during this year's show, said farmers needed to be equipped with the latest technology and the government's focus would be to increase farm productivity and farmers' incomes. The government had distributed tractors and tillers to several farmers during the shows.

"It is encouraging that the state government has several schemes lined up for farmers. We are in talks with them on providing tractors at subsidised rates," Kathuria said.

The company, which leads the country's tractor market, has witnessed an upward sales trend, posting a 25 per cent growth in the region in the first quarter of 2015-16. "We are currently the market leaders here, enjoying a share of 30 per cent. The plan is to raise it by another five per cent by the end of this fiscal," he said.

Farm Equipment Sector sells an average of 120 units per month in the Northeast. "In the country, we sell about 20,000 per month. We are aiming at selling 1,800 tractors in the region by the end of this year," the area manager said.

The company competes with Chennai-based Tafe and Swaraj, which has been acquired by Mahindra. It aims to strengthen its dealership network in Assam. "We have 19 dealerships, of which 13 are in Assam alone. This year, we plan to have six more in the state. The rest of the dealerships are located in Arunachal Pradesh (two), Manipur, Mizoram, Nagaland and Tripura," Kathuria said.

India has 16 domestic and four multinational companies manufacturing tractors. In 2013, 619,000 tractors were manufactured in the country, accounting for 29 per cent of the world's output.