Higher horse power tractors hit top gear

Indian tractor industry continues to witness strong momentum for higherhorsepower tractors due to multiple benefits in farm application.

In the backdrop of demand recovery that culminated in a year of strong sales for the tractor industry, tractors of 40 HP and more recorded double digit growth in 2016-17.

The domestic tractor market, which is the largest in the world by volumes, grew 18 per cent to reach 582,084 units in 2016-17. This comes after two successive years of decline.

While all segments posted growth in 2016-17, 40-50 HP segment, which accounts for about 50 per cent of the industry grew 26 per cent at 284,706 units and higher than 50 HP segment recorded a 27 per cent at 41,582 units.

“Higher horse power tractors are preferred for harvesting applications as also in areas where soil conditions are hard. This segment has favourable growth prospects,” said a senior official of a leading tractor company.

The 41-50 HP segment, has grown at a CAGR of 19 per cent over FY09-17, posting maximum growth. This reflects the preference towards tractors for farming as well as other allied services like haulage of construction material and personnel,” according to analysts of ICICI Securities.

On the other hand, sales of small HP tractors — 30 HP & 31-40 HP, which are primarily meant for agricultural activities, have grown at a CAGR of 0.7 per cent and 3.5 per cent respectively during the period.

Escorts expects the higher HP segment to grow faster than the industry in the coming years. Helped by new product introductions, the company has gained market share in the 41-50 HP and above 50 HP segments in the past couple of years, company official said at a recent analysts’ interaction.

Tractor makers such as TAFE, Escorts, Mahindra and Sonalika have rolled out tractors in the high HP segment.

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