Tractor industry to grow by 6-8% this fiscal: M&M
Chandigarh: Farm equipment major Mahindra & Mahindra on Friday said the tractor industry is expected to grow by 6-8 percent this fiscal with the prediction of normal monsoon and its advance arrival.
"Prediction of normal monsoon this year and its arrival in advance (from normal period) will augur well for rural economy and also for tractors... The overall (tractors) will definitely grow by 6 to 8 percent this fiscal," Mahindra & Mahindra, Senior Vice President (Marketing & AppliTrac), Farm Equipment, Sanjeev Goyle said here on Friday.
The deficient monsoon and drought in some states, including Maharashtra, last year hit tractors segment hard with the industry registering negative growth of 1.5 percent in 2012-13.
Prior to last fiscal, tractors' business had posted handsome growth in the range of 20-30 percent, he said.
"Because industry degrew by 1.5 percent, we also dewgrew by the same amount," said Goyle.
At present, the market size of tractors in the country is 5.25 lakh units.
Homegrown tractor major M&M, which claims to have 42 percent market share in the tractor segment, has already seen positive signs in the farm equipment segment.
"We have seen the first two months (April and May) very positive... We have grown by 31 percent (during these two months and our intention will be to grow faster than the market this fiscal," he said.
With pre-monsoon showers lashing the northern region, the company said it will boost the overall sentiments of rural India.
"Definitely there is going to be a positive impact of pre-monsoon showers... Overall sentiments of rural India will go up...Input cost of paddy transplantation which is currently going on in Punjab will also go down and also help saving underground water table," he said.
"With the government focusing on enhancing rural credit, the signs are very positive for roust rural growth in the country," he added.
On launch of new variants, Goyle said the company will roll out five new models of tractors this fiscal, having capacity between 40 and 60 hp.
M&M has wide range of tractors with 15-85 hp and other farm equipment, including harvesting solutions for rice, maize, sugarcane etc.
Asked about farm mechanisation, Goyle said there is an immense potential for agriculture mechanisation in the country even as adoption of farm technology by farmers is still slow.
"There is a need to demonstrate the benefits of farm mechanisation to farmers (in order to fast adoption of latest technology)," he said.
He said M&M has already sold 100 units of paddy transplanters in Punjab during last one year.
The Punjab government has been pushing for paddy transplantation in mechanised way due to severe shortage of labour for sowing.