HomeNew TractorsTractor Dealership in India – Start With Easy Steps

Tractor Dealership in India – Start With Easy Steps

Tractor Dealership in India - Start With Easy Steps

Farming is the primary occupation in India. The agriculture sector provides livelihood to over 151 million people. Hence, this makes tractors imperative to farmers. Now think: How profitable is catering to the needs of the farmers? This is exactly why a tractor dealership would work like a charm and help you get impressive profits.

Being a dealer has tons of benefits for anyone interested. Be it the growing demand for powerful 2wd & 4wd tractors in India, or the ever expanding agricultural sector, it is sure to get you on top quickly. Here, we will explore the potential of the tractor dealership in India. What’s more? We shall also look at how to start a dealership.

Potential Of a Tractor Dealership in India

Starting a tractor dealership in India can be fruitful in terms of profits due to these reasons:

1. Increasing Demand for Tractors

India, as a country, is filled with farmlands and farmers cultivating crops. And this is not changing anytime soon. Therefore, the need for new and used tractors is only increasing and will not decrease soon. 

2. Rise in Income Levels

Rural areas, in general, are experiencing an increase in income levels. As a result, farmers are gaining more yield and looking for ways to multiply their profits. At times like this, an online dealership would get them close to their dream.

3. Government Involvement in terms of Subsidies

The government has always been and continues to be India’s prime supporter of agriculture. Incidentally, they show their support through subsidies, loans and tax benefits. Be it getting land, buying implements, fertilisers, or tractors themselves. So in the tractor dealership game, nobody loses. Neither the farmers, the government, nor the dealer.

Tractor Dealership in India: Steps to Get Started

 Now, we shall look at what it takes to open a tractor dealership in India.

Tractor Dealership in India Steps to Get Started

1. Drafting a Dealership Agreement

Like any vehicle dealership, this also needs you to have a dealership agreement with a preferred tractor brand. TractorJunction is one such brand that can get you closer to your dream of an online dealership. You can lodge an enquiry with us here, and we will be sure to get in touch!

2. Registering your Dealership

Getting your tractor dealership applied as a legal entity is pertinent. You can register it as a private limited company, a partnership, or a sole proprietorship. Why is it important? Well, a legal entity means you are credible to your customers. Furthermore, you can get tax benefits from the government and hire staff with benefits. You can also avail of loans from banks.

Check Out: How to get Instant Tractor loans?

3. Licences and Permits

Securing licences and permits is the next step in opening a dealership. These permits vary from state to state. So take a look at what your state needs, and work accordingly to get your licences and permits.

4. Identifying Location

Choosing the location for your tractor dealership is a skill. Be it knowing about the best place for farmers to approach with ease or balancing this out with the rates of the market. While a popular location might mean more costs, a cheap location means you become unpopular. So choose a location that is ideal in terms of both and is approachable for your customer base.

5. Selecting Right Staff

Of course, what is a business without staff? So hire talent, benefit them, and take care of the logistics. This is the trifecta of making your business run itself. 

Tractor Dealership Business Plan

Tractor dealership or otherwise, every business should have a plan. A business plan is important to make your business stand tall. Consider factors such as costs, your market, your idea or product, and other things explored below.

Entering the Dealership Landscape

  • You have to have a brief overview of your dealership, including a mission statement and the goals you are trying to achieve. 
  • Now you have a mission, and you have goals that you are looking to achieve. It is time to develop product ideas that propel you towards these goals. 
  • Then, form a team. This is important for businesses, as a team means a reduced load on you.

Costs Involved

  • Consider the costs required to get your dealership on floors. Make a budget that includes the investment for infrastructure, staff, expected revenue, expenses and profitability.
  • A 3 to 5-year projection is important, as it gives you a comprehensive view of the money you spend and your return on investment.
  • Comparing real-time returns with these projections will give you an idea about how to go about your business.

Knowing your Base

  • Know the current trends in the market. This helps you cater to your customers better.
  • Also, it pays to know what the customers want. This includes the customer demographics and growth potential. 
  • Additionally, analyse what your competitors are doing to stay relevant. This can give you an idea about their strengths and weaknesses.

Establishing your Name

Opening a dealership is all well and good, but if you don’t establish your name in the dealership landscape, you might not go far. From establishing an identity to marketing and promoting your brand, here are some methods by which you can gain people’s trust. 

Unique Selling Points

Every brand has its uniqueness. Be it Apple with its own OS or Lamborghini with its trademark design, they all have their own identity. So establish your brand identity as a tractor dealership. Also make yourself known for something unique that the customers cannot get anywhere else.

Connecting with your customers

  • Creating an online presence via a website, mobile app and social media accounts, can help you be relevant and connect with your customers better. 
  • Connecting with your customers can also happen when you provide impeccable customer service. 
  • Building better relationships with customers will reflect on your profits. Provide personalised service to your customers to keep yourself in their good books.


Partnership with market leaders in other sectors helps your business a lot. In addition, start investing in advertisements and marketing campaigns. The more visible your brand is, the better its chances of gaining profits.

Post-purchase support

Hello, User Experience! 

This phrase has gained popularity as brands are ready to improve their repertoire. Repertoire can be defined as the number of customers choosing your brand over other brands. The rate at which they get more into your brand decides your profits. So make sure you offer them post-purchase support, such as servicing.  

Start Your Tractor Dealership With Us!


In conclusion, following these steps will get you closer to starting a successful tractor dealership in India. Starting from registering your business to aspects such as a business plan, and establishing your brand, these are some things that you should follow to make your dealership successful in India.

Wish to become tractor dealer in India? We can offer you a systematic approach to plan, start, and put together tractor franchises in your locations.

Frequently Asked Questions

Que. Is tractor dealership profitable in India?

Ans. Yes, with dealerships of tractors, you can make a profit of 15% -18% on MRP. Moreover, you can additionally earn by servicing tractors, selling tractor spare parts or even farming implements of great variety.

Que. How much investment is required to start a tractor dealership business plan?

Ans. The investment can depend on your budget. Moreover, you can start with a capital of Rs. 50 lac and can go up to Rs. 1 Cr.

Que. Which tractor brand’s dealership is highly profitable?

Ans. There are over 25+ tractor brands available to start profitable dealerships in India. However, Mahindra & Mahindra (M&M) is the leading tractor brand in India, with farmer friendly, budgeted tractors, made for a wide variety of farming and utility applications.

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