 "Domestic tractor market beats slowdown")
In the last six months, the tractor market grew by about 20% against the growth of 10% during 2012-13 fiscal.
“The growth of tractor segment mainly depends upon two factors namely monsoon and the price index of food and agricultural commodities, both of which indicate rural incomes,” Escorts Agri Machinery chief sales and marketing officer Sameer Tandon told Business Standard.
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He said rural and farm incomes had increased last year due to good monsoon and higher prices of food and agri commodities.
As such, he underlined, the effect of general slowdown, inflation and higher interest rates had no impact on the domestic tractor market, which is pegged at 5,80,000 units annually.
Escorts commands a market share of 11.5% in India. In Uttar Pradesh, the company has a better share of 18-19%. “The instances of loan repayment defaults are much lower in rural areas compared to the urban markets,” he added.
The domestic market is dominated by smaller 30-40 Horsepower (HP) tractor segment, which in UP account for almost 70% of the segment.
Tandon said the second hand tractor space was growing fast in the country as institutional finance is readily available at competitive rates. “There is a ready market for second hand tractors, which get sold to new buyers after asset depreciation of about 40%,” he informed.
Meanwhile, Escorts unveiled its new range of tractors Powertrac DS – Plus Euro Series combines power, economy and superior design.
The usage of tractors for non-agricultural purposes has been growing in India, such as being deployed in sand mines, brick kilns, road making, ferrying passengers etc.