Mahindra & Mahindra(M&M), the market leader in the tractor segment for the last 27 years, is now all set to expand its presence further in the compact tractors category that is currently dominated by local unorganised players. The company today launched the Yuvraj 215, the country's first 15 horse-power (hp) tractor targeting the small and marginal farmer with an average landholding of two to five acres of land.
M&M launched the Yuvraj 215 in Gujarat market today and plans to take on the unorganised players in the small tractor segment with an aggressive pricing of Rs 1.75 lakh.
"The local players usually offer 9hp tractors at a similar price range. Since there was no organised player operating in the segment so far, they could dictate the pricing. We expect the Yuvraj 215 to be a runaway hit with the smaller farmers as it comes with the Mahindra assurance", said Sanjeev Goyle, senior vice president, marketing and applitrac, farm equipment sector, M&M.
Nearly, 82 per cent of the farmer population in the country are small and marginal farmers. M&M hopes to beat the industry growth rate forecast of 12-13 per cent this fiscal by a fair margin. The company sold 1.66 lakh tractors last financial year, growing 32 per cent on a year on year basis, and beating the industry growth rate of 31 per cent.
"This year the industry is likely to clock a slower growth rate compared to last year due to various factors. For one, the minimum support price(MSP) that grew by over 40 per cent in the last two years pumping in cash in the farmers' hands, is not likely to be that high this time around. And another, the monsoons have been delayed in some parts of the country together with a few flood affected belts like in Punjab and Haryana", explained Goyle.
The company has already sold around 50,000 tractors in the first quarter of the current fiscal, up significantly from around 35,000 tractors during the same period last fiscal. The Yuvraj 215 would be produced at Rajkot that now has a capacity to manufacture 16000 units of the model per year. M&M has entered into a contract manufacturing agreement with Deepak Diesels Pvt. Ltd. (DDPL) which will exclusively manufacture the Yuvraj 215 in Rajkot, adhering to M&M’s quality standards and processes. M&M plans to launch the compact tractor in other major agri-equipment markets like Maharashtra, Uttar Pradesh, Bihar, Tamil Nadu and Madhya Pradesh within this year.