India Agricultural Tractor Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.42 Billion |
| Market Size (2029) | USD 10.28 Billion |
| CAGR (2024 - 2029) | 6.70 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Agricultural Tractor Market Analysis
The India Agricultural Tractor Market size is estimated at USD 7.42 billion in 2024, and is expected to reach USD 10.28 billion by 2029, growing at a CAGR of 6.70% during the forecast period (2024-2029).
Agriculture remains a significant contributor to the Indian economy, with 51.09% of the country's land dedicated to agricultural activities. The Ministry of Agriculture and Farmers Welfare reports an increase in total cropped area from 201.18 million hectares in 2020-2021 to 219.16 million hectares in 2021-2022. This extensive agricultural area promotes using tractors for various complex farming operations. The demand for tractors in India is primarily driven by large-scale farming operations, declining labor availability, and increasing mechanization in the agriculture sector. World Bank data indicates a decrease in agricultural employment, from 44.7% of the population in 2020 to 42.9% in 2022.
The Indian tractor market is further propelled by rising farm wages and government support for farm mechanization. The average daily wage rate for agricultural laborers across India increased from Rs 292.05 (USD 3.9) in 2019-20 to Rs 328.18 (USD 4.2) in 2021-22 as reported by the Ministry of Agriculture and Farmer Welfare. The central government offers a 50% subsidy on tractor purchases under the Pradhan Mantri Kisan Tractor Yojana scheme, with the subsidy amount directly transferred to the beneficiary's account. Beyond agricultural, social, and economic factors, macroeconomic and intrinsic elements such as population growth and increasing demand necessitate the adoption of mechanized solutions like tractors for sustainable long-term growth.
India Agricultural Tractor Market Trends
30-50 HP Tractors Are Widely Preferred by Farmers
Tractors in the 30-50 HP range are well-suited for soft soil conditions, such as river basins, and are in high demand in India. This demand is driven by farmers' low disposable income, high labor costs, and small farmland sizes. These moderate-horsepower tractors offer advantages such as customization options and lower fuel consumption, making them accessible to small and marginal farmers.
The trend towards smaller farm holdings further supports the demand for 30-50 HP tractors. According to the All India Rural Financial Inclusion Survey (NAFIS) 2021-22, the average landholding for farming in India decreased to 0.74 hectares, a 31% reduction from the previous survey. These tractors are efficient for small farm holdings and are crucial for increasing productivity, making them the most commonly used in India. This trend is expected to drive market growth during the forecast period.
Market players are responding to this growing demand by introducing new models in the 30-50 HP segment. For example, in September 2023, Swaraj launched a new range of tractors in the 40-50 horsepower category. Similarly, in May 2024, VST Tillers introduced three new tractors (VST ZETOR 4211, 4511, and 5011) with horsepower ranging from 41-50. These models are the result of joint development efforts between VST and ZETOR, manufactured at the VST Zetor facility in India.
Uttar Pradesh Provides the Biggest Market for Agricultural Tractors
Agriculture forms the backbone of Uttar Pradesh's economy, contributing 24% to the state's GDP in 2023, according to the Ministry of Statistics and Program Implementation (PRS). As the primary source of livelihood for a substantial portion of the state's population, the extensive agricultural activities drive the demand for agricultural machinery, particularly tractors. The Department of Agriculture and Farmers Welfare reports that Uttar Pradesh had the largest area under food grains production in 2021-2022, covering 19.55 million hectares, representing 15% of the country's total. Farmers utilize tractors for essential farming operations including plowing, tilling, sowing, harrowing, and harvesting, which enhances agricultural efficiency and productivity in the state.
The increasing fragmentation of land holdings in Uttar Pradesh has resulted in smaller land parcels, making traditional manual farming methods impractical. Tractors provide an efficient solution for small-scale farmers to manage their agricultural operations, positioning Uttar Pradesh as the leading state in tractor sales across India. In 2024, Escorts Kubota announced an investment of INR 45 billion (USD 531.4 million) to establish a greenfield manufacturing facility in Uttar Pradesh. This reflects the growth of the market.
India Agricultural Tractor Industry Overview
The agricultural tractor market in India is consolidated, with large global and domestic manufacturers holding dominant positions. Farmers show a strong preference for established brands due to quality assurance and reliable after-sales services. The market's largest share is held by key players including Mahindra & Mahindra Ltd, Tractor and Farm Equipment Ltd (TAFE), International Tractor Ltd, Escorts Limited, and John Deere India Private Limited. These companies focus their investments on product development, expansion initiatives, and strategic acquisitions. Research and development remains a priority area, particularly for introducing new products at competitive price points.
India Agricultural Tractor Market Leaders
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Mahindra & Mahindra Limited
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John Deere India Private Limited
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TAFE Limited
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Escorts Group
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International Tractors Ltd (Sonalika)
*Disclaimer: Major Players sorted in no particular order
India Agricultural Tractor Market News
- October 2024: Mahindra & Mahindra launched the Mahindra Arjun 605 DI 4WD tractor to address the increasing demand for higher horsepower tractors during farming seasons. The company introduced the new tractor model in Punjab, Haryana, Madhya Pradesh, Rajasthan, and Uttar Pradesh.
- April 2024: Swaraj Tractors introduced five variants in a limited edition on its 50th anniversary. This edition, available for two months, has MS Dhoni's signature as a symbol of gratitude to the customers.
- March 2024: Sonalika Tractors invested USD 157.4 million for two new plants in Punjab. The company invested USD 121.1 million in a new tractor assembly plant and USD 36.3 million in a high-pressure foundry.
India Agricultural Tractor Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Mechanization Trend in Agriculture Sector
4.1.2 Trend of Custom Hiring of Tractors
4.1.3 Growing Government Support to Enhance Farm Mechanization
4.2 Market Restraints
4.2.1 Lack of Awareness and Skilled Manpower
4.2.2 Poor Economic Condition of Farmers
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Buyers
4.3.2 Bargaining Power of Suppliers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Engine Power
5.1.1 Less than 30 HP
5.1.2 31-50 HP
5.1.3 51-80 HP
5.1.4 Above 80 HP
5.2 Drive Type
5.2.1 Two-wheel Drive
5.2.2 Four-wheel Drive
5.3 Application
5.3.1 Row Crop Tractors
5.3.2 Orchard Tractors
5.3.3 Other Applications
5.4 Geography
5.4.1 Uttar Pradesh
5.4.2 Madhya Pradesh
5.4.3 Maharashtra
5.4.4 Rajasthan
5.4.5 Gujarat
5.4.6 Others
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Mahindra & Mahindra Limited
6.3.2 John Deere India Private Limited
6.3.3 CNH Industrial (India) Pvt. Ltd
6.3.4 TAFE Ltd
6.3.5 International Tractors Limited (Sonalika)
6.3.6 Preet Tractors (P) Limited
6.3.7 Escorts Kubota Limited
6.3.8 Indo Farm Equipment Limited
6.3.9 VST Tillers Tractors Limited
6.3.10 Captain Tractors Private Limited
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
India Agricultural Tractor Industry Segmentation
A tractor is an engineered vehicle designed to provide high tractive effort at low speeds, primarily used to pull agricultural machinery or trailers. This report focuses exclusively on tractors used in agricultural operations. It does not include other agricultural machinery or tractor attachments. Tractors designed for industrial and construction purposes are excluded from the study's scope.
The Indian agricultural tractor market is segmented by engine power (less than 30 HP, 31-50 HP, 51-80 HP, and above 80 HP), drive type (two-wheel drive and four-wheel drive), application (row crop tractors, orchard tractors, and other applications), and geography (Uttar Pradesh, Madhya Pradesh, Maharashtra, Rajasthan, Gujarat, and other regions).
The report provides market estimation and forecast in value terms (USD) for each segment.
| Engine Power | |
| Less than 30 HP | |
| 31-50 HP | |
| 51-80 HP | |
| Above 80 HP |
| Drive Type | |
| Two-wheel Drive | |
| Four-wheel Drive |
| Application | |
| Row Crop Tractors | |
| Orchard Tractors | |
| Other Applications |
| Geography | |
| Uttar Pradesh | |
| Madhya Pradesh | |
| Maharashtra | |
| Rajasthan | |
| Gujarat | |
| Others |
India Agricultural Tractor Market Research FAQs
How big is the India Agricultural Tractor Market?
The India Agricultural Tractor Market size is expected to reach USD 7.42 billion in 2024 and grow at a CAGR of 6.70% to reach USD 10.28 billion by 2029.
What is the current India Agricultural Tractor Market size?
In 2024, the India Agricultural Tractor Market size is expected to reach USD 7.42 billion.
Who are the key players in India Agricultural Tractor Market?
Mahindra & Mahindra Limited, John Deere India Private Limited, TAFE Limited, Escorts Group and International Tractors Ltd (Sonalika) are the major companies operating in the India Agricultural Tractor Market.
What years does this India Agricultural Tractor Market cover, and what was the market size in 2023?
In 2023, the India Agricultural Tractor Market size was estimated at USD 6.92 billion. The report covers the India Agricultural Tractor Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Agricultural Tractor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major factors driving the Indian Agricultural Machinery Market?
The major factors driving the Indian Agricultural Machinery Market are a) Supportive government policies and subsidies promoting farm mechanization b) Increased income allowing farmers to invest in modern equipment
What are the major factors driving the Indian Agricultural Machinery Market?
The major factors driving the Indian Agricultural Machinery Market are a) Supportive government policies and subsidies promoting farm mechanization b) Increased income allowing farmers to invest in modern equipment
India Agricultural Tractor Industry Report
The Indian Agricultural Machinery Market is set for strong growth, fueled by increased mechanization, robust government incentives, and the rising prevalence of contract farming. The market features a wide array of equipment such as tractors, harvesters, and planting machinery, designed to meet varied agricultural activities like land development and crop harvesting. A shift towards modern agricultural practices is driving demand for advanced machinery that enhances efficiency and reduces manual labor, particularly compact tractors ideal for smaller land parcels. The integration of new technologies in farm equipment is boosting agricultural productivity and efficiency. Financial backing from institutions and supportive government policies are empowering farmers to adopt modern mechanized solutions, significantly transforming agricultural practices across the region and encouraging market expansion. For in-depth analysis and market forecasts, a report by Mordor Intelligenceā¢ offers a detailed overview. Get a sample of this industry analysis as a free report PDF download.
India Agricultural Tractor Market Report Snapshots
