The Indian Tractor industry recorded exports of over 76,054 units between April 2019 – March 2020.
In India Tractor exports registered a decline of 17.5% in FY20 v/s FY19. The major tractor export markets of the ‘Made-in-India’ tractors are US, Nepal, Bangladesh, Mexico and Italy.
International Tractors Limited (Sonalika) become no. 1 in Tractor Export during FY20, John Deere lost position. Sonalika exports 18078 units to its export market. Sonalika’s growth in sales is -3 units but still manages to grab 23.8% MS in export which is 4.2% higher than FY19 because of overall export decline 17.5%.
John Deere India lost no.1 tractor export position to Sonalika as export decline by 19.8% in FY 20 stood to 15867 units v/s 19772 units in FY19.
TAFE and M&M export volumes fell double-digits in FY20, 25% and 26.9% simultaneously. Both manufacturers lost market share 1.7% each in terms of exports.
New Holland’s export volumes fell 9.2% in FY20 but it still gains 1.1% market share in terms of exports.
HP Wise Tractor Export in FY2020-
Same Deutz Fahr export volumes fell double-digits in FY20 (-42.2%). It lost the highest market share (-2.4%) in terms of exports.
Escorts recorded the highest YoY growth in exports by 13.2%. It clearly highlights Escorts’s increased focus on international markets. However; Escorts’s Market Share is still 5% which s 1.3% higher than the FY19
India’s major export destinations are US, Nepal, Bangladesh, Mexico and Italy. Exports from Indian farm tractors have also surged over the last decade in Argentina, Brazil and Mexico though less in terms of absolute values. Simultaneously, Indian tractor manufacturers and exporters also need to tap and concentrate on other countries in the region, like Bolivia, Chile Colombia, Ecuador, Paraguay Peru and Uruguay. These markets have good opportunities for farm tractors as their agricultural activities are significant.
India is the largest tractor market in the world and is estimated to grow at 10% annually for the foreseeable future. It is also the largest tractor producer, accounting for about 35% of global volumes. The major market share is garnered by the 31-50 HP segment, which accounts for 82% of sales volumes of 7,09,005 units in 2020. Although tractors are at the core of farm mechanization, farm production has gone way beyond simply utilizing tractors.
Now, the emphasis is on increasing productivity by moving away from traditional farming methods to adopting other powered equipment and implements, thus becoming a prime driver of growth in this sector. To boost this, the government is working to provide easier and smooth access to credit for farmers and developing farmer-friendly policies, tying into the new and growing trend of collaborative farming in India.
Check India's Tractor sales in FY20 - https://bit.ly/TSFY20
Check India's Tractor sales in Mar'20 - https://bit.ly/TsalesM20
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