Mahindra & Mahindra Ltd introduced its first lightweight tractor Swaraj Target 630 in Mumbai on Friday. The model will be available at ₹5.35 lakh ex-showroom. 

Swaraj Target will debut in two models in the 20-30 HP (14.91 – 22.37kW) category and will later introduce Swaraj 625. 

“Swaraj Target opens a new segment for the growth of Swaraj Tractors and facilitates horticulture mechanisation, a fast-growing segment in Indian agriculture. A new addition to Swaraj’s portfolio, this is completely in-line with our Farm Equipment sector’s purpose of transforming farming and enriching lives, making us future-ready,” said Hemant Sikka, President – of Farm Equipment Sector, Mahindra & Mahindra Ltd.

The tractors will have 29 HP engines, 87 Nm torque and a lifting capacity of 980 Kgf. 

Farm equipment biz

The farm division of Mahindra and Mahindra Ltd earned a revenue of ₹8,023 crore during the last quarter against ₹6,178 crore in the year-ago period. The company also gained 40.7 per cent market share during the quarter and 41.2 per cent of market share in the whole of FY23.

With an uptick in government spending ahead of the elections and a good monsoon, Mahindra and Mahindra Ltd is expecting the tractor industry to grow in low single digits in FY24.

Sales may drop

According to rating agency Crisil, the growth rate in tractor sales is set to halve in FY24, while the operating margins are set to improve owing to lower input costs. “Domestic tractor sales volume growth is seen halving to 4-6 per cent in fiscal 2024 from a high base created by a compound average growth rate of 10 per cent since fiscal 2020 on the back of successive normal monsoons,” Crisil said in March.