India Agricultural Tractor Machinery 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 Machinery 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).
- The demand for agricultural machinery, including tractors, increased due to higher Kharif sowing, good cash flows to farmers, a timely and normal monsoon in the country across June and July, continued higher rural spending by the government, and exemption from lockdown restrictions.
- Government initiatives toward rural development, farm mechanization, and various factors, such as high rural wages and scarcity of farm labor, are likely to increase the tractor volume over the long term.
- Two-wheel-drive tractors are more popular than four-wheel-drive tractors in the Indian market. The agriculture tractor market is dominated by aboriginal Indian OEMs, namely Mahindra & Mahindra Limited, TAFE, International Tractors Ltd (Sonalika), and Escorts Limited. Key international tractor manufacturers like Deere & Company and CNH penetrated the market and established a decent market presence.
- India remains a highly lucrative tractor market because of the decreasing availability of farm labor and the rise of innovative business models, such as custom hiring solutions for tractors. In India, under the mechanization component of the macro-management scheme of agriculture by the Indian government, there is a subsidy for promoting agricultural mechanization, including 25% of the cost limited to INR 30,000 for buying tractors of up to 35 PTO HP. Thus, with the rising government support for enhancing farm mechanizations and expansion in crop production, the sale of agricultural tractors is anticipated to rise in the upcoming years.
India Agricultural Tractor Machinery Market Trends
30-50 HP Tractors Are Widely Preferred
- 30 HP- 50 HP are moderate horsepower tractors that work well in soft soil conditions, such as river basins. In India, the demand for 30 HP- 50 HP tractors is high owing to low disposable income of farmers and high labor costs. Due to small farmland sizes, farmers prefer small and customized tractors for agricultural purposes. Moreover, less fuel consumption by small tractors helps to empower small and marginal farmers.
- Furthermore, with the average size of household ownership decreasing, farm holdings are seeing a downward trend. 30-50 HP tractors are viable and efficient for small farm holdings and are vital to increasing productivity. Therefore, 30 to 50-horsepower tractors are most commonly used in India.
- The players in the market are also focusing on launching new models to increase their market share. For instance, in November 2022, VST Tillers Tractors Ltd and Zetor Tractors launched two new tractor models with 40 and 50 HP engine capacities, respectively.
Uttar Pradesh Provides the Biggest Market for Tractors
- Agriculture is the most crucial aspect of the Uttar Pradesh economy, contributing 28% to the economy in 2022, according to the Ministry of Statistics and Program Implementation (PRS). It is the primary source of livelihood for a significant portion of the state’s population. The vast agricultural activities in the states drive the market for agricultural machinery, including tractors. Tractors are mainly used to carry out various farming tasks such as plowing, tilling, sowing, harrowing, and harvesting, thereby increasing the efficiency and productivity of agriculture in the state.
- In Uttar Pradesh, the fragmentation of land holdings has led to smaller land parcels, making traditional manual labor-intensive farming less feasible. Tractors offer a more efficient alternative for small-scale farmers to manage their land. This has led to the increased adoption of tractors in farming practices, making Uttar Pradesh the first state with more tractor sales in India.
India Agricultural Tractor Machinery Industry Overview
The agricultural tractor market in India is consolidated and dominated by large global and domestic manufacturers, and farmers prefer trusted brands for quality assurance and better after-sales services. Mahindra & Mahindra Ltd, Tractor and Farm Equipment Ltd (TAFE), International Tractor Ltd, Escorts Limited, and John Deere India Private Limited are some leading players occupying the highest share in the market. These major players are investing in new products and improvisation of products, expansions, and acquisitions for business expansions. Another significant investment area is the focus on R&D to launch new products at lower prices.
India Agricultural Tractor Machinery 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 Machinery Market News
- 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.
- January 2024: Tractors and Farm Equipment Limited introduced electric tractors at the Tamil Nadu Global Investors Meet (TN GIM) 2024. These tractors are equipped with auto steer and a farm management system that caters to the needs of the evolving Indian farming industry.
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
4.2 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
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
India Agricultural Tractor Machinery Industry Segmentation
A tractor is an industrial vehicle with one or two small wheels in front and two large wheels at the back for agricultural and other functions. It is used to move the attached implement that plows the field or performs different activities. For this report, tractors used in farm operations have been considered. The report does not cover other agricultural machinery and attachments to tractors. Tractors used for industrial and construction purposes are also excluded from the study.
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 Others).
The report offers market estimation and forecast in value (USD) for the abovementioned segments.
| 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
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 Intelligence™ offers a detailed overview. Get a sample of this industry analysis as a free report PDF download.
