Tractor Sales in India contracted by over 10% in FY2019-20 v/s FY2018-19. It is the first in past 3 years that the Tractor Industry saw a degrowth!
Tractor Sales Data have been an apt indicator about the performance of Rural Economy in the country. India is an Agriculture driven economy and the contribution of Agriculture on India’s GDP is as high as 16%. Contribution of Agriculture sector in Indian economy is much higher than world’s average (6.4%). Also almost 70% population in the Rural Areas primarily depend on agriculture for livelihood.
The Tractor Industry in India also suffered in FY2020 due to economic slowdown, unusual monsoons last year and the recent Covid19 outbreak. The Industry registered a YoY degrowth of -10.1% in FY2019-20.
OEMwise Tractors Sales Statistics –
Market Leader Mahindra & Mahindra recorded a drop of -7.8% in FY20 v/s FY19. However; Mahindra saw 1% increase in Market Share and strengthened its position in the market. Do note that Mahindra’s volumes include PTL numbers too (i.e. Swaraj Tractors).
TAFE continued to be in the 2nd spot; but lost hefty -1.41% Market Share in FY20. TAFE’s loss was primarily John Deere’s gain. John Deere had an exceptional FY20 and was one of the few OEMs to record a positive YoY growth and helped gain Market Share.
Do note that Indian OEMs have clear dominance in Tractor Industry. The Top 4 OEMs (M&M, TAFE, Sonalika & Escorts) combined command a Market Share of over 81% and is quite impressive. Will this scenario ever happen in passenger cars too where Indian OEMs lead the way?
Japanese Tractor Manufacturer Kubota grew stellar 18.8% in FY20 v/s FY19. Kubota is slowly making strides in the Indian Tractor market but has a long way to go for gaining volumes.
Market Share Graph –
Market Share Movement for past 5 Financial Years –
M&M has been consistently maintaining the Market Share. Do note that Mahindra’s market share in past 5 FY has been almost similar!
TAFE’s market share has receded from 23.1% in FY16 to 16.9% in FY20. Not a good sign for the manufacturer.
John Deere has gained good traction in past years and its Market Share shot from 6.1% in FY16 to 9.6% in FY20!
Kubota’s growth too has to be noted – has been able to jump to 1.8% Market Share in FY20.
Data Source: Tractor Junction