SAS rolls out cheapest tractor for Rs 99,0000

SAS Motors today launched India's first low-cost tractor Angad, priced at Rs 99,000. The 22 hp tractor is touted to be available at half the price of the cheapest tractor in the market.

The final product is expected to be available to farmers in the country in the next one month.

The company is eyeing a topline of Rs 300 crore in 2005-06, in its first full year of operations with a total sales of 30,000 units in that year. The target for sales for 2006-07 is Rs 800 crore.

The engine and components will be sourced from two Chinese firms, Shefeng and Liadong. SAS Motors will also be launching tillers, tri-car and rural trucks in the range of 15-24 hp and in the price band of Rs 99,000 and Rs 200,000.

SAS Motors' managing director Ravindra Kumar said that plans are afoot to expand its manufacturing base at six more centres across the country.

The company that at present has a 50 tractors per day assembly plant in Ghaziabad, is eyeing, Tamil Nadu, Maharashtra, West Bengal and Kandla (Gujarat), Bhopal (MP) and eastern UP as possible locations for setting up more assembly units.

More assembly lines are planned in all those regions where the annual demand exceeds 12,000 units. SAS executives said the cost of each of these assembly lines would be Rs 30 lakh.

Kumar, "Our technology partner and component supplier in China was only a $150,000 company 10 years ago. Today their business has grown to $2 billion per annum."

The distribution of the product would be at the tehsil level. "We plan to have 3,000 dealers spread across the country," he said

Angad, the low-cost tractor is expected to be available in the market in a month from now. Angad will be made in the range of 15-24 hp and promises to consume 25 per cent less fuel and 60 per cent lower maintenance cost.

SAS Motors will also identify suitable market where there is demand for small capacity tractors. Kumar said the production capacity can be expanded to match the demand and the company was open to bringing dealers as partners in assembling the tractors.