Tractor Industry.

. INTRODUCTION
Tractor industry plays an important part as agriculture sector has a major contribution to
India’s GDP. Tractors are part of agricultural machinery industry. Tractors came to India
through imports and later on were indigenously manufactured with the help of foreign
collaborations. The manufacturing process started in 1961-62. Indian tractor industry is
relatively young but now has become the largest market worldwide.

Higher productivity and greater output are the two major contributions in farm mechanization.
Tractors form an integral part of farm mechanization and have a crucial role to play in increasing
agricultural productivity. Tractor is a highly versatile piece of machinery having a multitude of
uses, used in agriculture both for land reclamation and for carrying out various crop cultivation
and also employed for carrying out various operations connected with raising the crops by
attaching suitable implements and to provide the necessary energy for performing various crop
production operations involved in the production of agricultural crops. Tractors are capital
intensive, labour displaying used as a mode of transport, in electricity generation, in construction
industry and for haulage operation. It has now become an integral part of farm structure .The
application of tractor for agricultural activities which swept India during the last twenty years
have erased the problem of farmers. Farm mechanization program in India aims to integrate the
use of available human and animal farm power with mechanical sources of power for increasing
the productivity.

Indian tractor industry, comparatively young by world standards have expanded at a

spectacular pace during last four decades. Consequently it now occupies a place of ride in India's
automobile industry. U.S.A., U.S.S.R. and only a few Western European countries exceed the
current production of tractors in India, but in terms of growth India's growth is unmatched even
with countries of long history of tractor manufacturing.

The spectacular achievement reflects the maturity and dynamism of tractor manufacturers and
also the policies adopted by the government to enable it to effectively meet the demand. The
tractor industry in India has made a significant progress in terms of production and capacity as
well as indigenisation of technology. It is a typical sector where both imported technology and
indigenous developed technology have developed towards meeting the overall national
requirements. The global spotlight on tractors manufacturers certainly in terms of volume seems
to be swinging away from the USA, UK and Western and Eastern Europe towards India where
growth in the number of producers and the total volume in recent years have been impressive. In
India tractor industry has played a vital role in the development.

India's gross cropped area is next only to United States of America and Russia and long with
fragmented land holdings has helped India to become the largest tractor market in the world.
But it drops to eight position in terms of total tractor in use in the country when compared to
international figures, only 3% of total tractors used all over the world . It is to be noted that while
the overall automobile industry is facing recession the tractor industry is growing at 9%.About
20% of world tractor production is carried out in our country only. The arable land in India is
high as 12% of the total arable land in the world. Tractor market in India is about Rs 6000 crore.
On an average around 400000 tractors are produced and their sale is 260000.Uttar Pradesh is the
largest tractor market in our country. One out of every four tractor is being Purchased here.
Indian tractor market has to be viewed considering its position in the world with respect to key
parameters as given below

2. HISTORY
1945 to 1960

War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid
1940's. In 1947 central and state tractor organizations were set up to develop and promote the
supply and use of tractors in agriculture and up to 1960, the demand was met entirely through
imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.

[edit] 1961 to 1970

Local production began in 1961 with five manufacturers producing a total of 880 units per year.
By 1965 this had increased to over 5000 units per year and the total in use had risen to over
52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working
in the country.

[edit] 1971 to 1980

Six new manufacturers were established during this period although three companies (Kirloskar
Tractors, Harsha Tractors and Pittie Tractors) did not survive.HMT, a large public sector unit,
began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology
acquired from Zetor of the Czech Republic. Escorts Ltd. began local manufacture of Ford
tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000
in 1975 reaching 71,000 by 1980. Credit facilities for farmers continued to improve and the
tractor market expanded rapidly with the total in use passing the half million mark by 1980.

[edit] 1981 to 1990

A further five manufacturers began production during this period but only one of these survived
in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985
and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net
importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa.

[edit] 1991 to 1997

Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in
India. By 1997 annual production exceeded 255,000 units and the national tractor population
had passed the two million mark. India now emerged as one of the world leaders in wheeled
tractor production.
[edit] 1997 to 1999

Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo, already well
established in the motor industry, began tractor production in Pune. In April of the same year
New Holland Tractor (India) Ltd launched production of 70 hp tractors with matching
equipment. The company is making a $US 75 million initial investment in a state of the art plant
at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Larsen
and Toubro have established a joint venture with John Deere, USA for the manufacture of 35-
65 hp tractors at a plant in Pune, Maharashtra and Greeves Ltd will produce Same tractors under
similar arrangements with Same Deutz-Fahr of Italy. Looking to South American export markets
Mahindra and Mahindra are also developing a joint venture with Case for tractors in the 60-
200 hp range. Total annual production was forecast to reach 300,000 during the following year.

[edit] 1999 to Present

Tractor Manufacturers Association

Facing market saturation in the traditional markets of the north west (Punjab, Haryana, Western
Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000.
Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse
the decline, and began exploring the potential for overseas markets. Sales remained in a slump,
and added to the market saturation problems also came increased problems of "prestige" loan
defaults, where farmers who were not financially able took tractors in moves to increase their
families prestige. There are also reported increased misuse of these loans for buying either
lifestyle goods, or for social functions. Government and private banks have both tightened their
lending for this sector adding to the industry and farmers woes. By 2004 a slight up tick in sales
once again due to stronger and national and to some extent international markets. But by 2006
sales once again were down to 216,000 and now in 2007-08 have slid further to just over
200,000.

The Tractor Manufacturers' Association of India (TMA) is housed under The Confederation of
Indian Industry (CII), New Delhi. Though not all manufacturers are members TMA is
recognized as the main trade group representing the agricultural tractor industry in India.
Mallika Srinivasan, Economic Times Businesswoman of the year 2006, and CEO of TAFE
Limited, is currently serving as president.

Current Manufacturers of Tractors in India

Angad Tractors, SAS Motors Limited

SAS Motors Limited, the manufacturer of 'Angad' Tractors, is a public limited company
incorporated in April 2003. Its flagship product is ‘Angad’ 240 D tractor. The company is
engaged in sourcing, assembling, manufacturing, and marketing of ‘Angad’ brand tractors and
farm machineries. SAS Motors also provides a range of agricultural equipments.
Angad Tractors (SAS Motors Limited) main mission is to make low cost tractors, power tillers,
and other farm machineries designed on ‘appropriate technology ’ platform available to the
Indian farmers.

Currently, SAS Motors Limited manufactures tractors ranging from 15-35 hp. [2]

Balwan Tractors, Force Motors Ltd

Main article: Force Motors Ltd

Formerly known as Bajaj Tempo Ltd. until 2005, Force Motors Ltd., makers of India's
ubiquitous 3-wheeler Tempos since 1957 in a collaboration with Vidal & Sohn Tempo Werke,
Germany. In 1999 began production of Ox and Ox 45 Brand Tractors both which incorporated
transmission technology from the German manufacturer ZF. Additional line Balwan was
introduced in 2004 and between the lines Force Motors offers a line of two-wheel and four-
wheel tractors in a horsepower range from 10 - 50 HP. [3] In india BALWAN 600 launched
shortly.It have 60 Hp engine . Balwan Tractores are one of the good tractor in india for
agricultural perpose,They are having Benz engine,

Captain Tractors Pvt. Ltd

Founded in May 1994 and located in Rajkot, India, Captain Tractors manufactures mini-tractors
under the Captain brand.[4]

Crossword Agro Industries

Located in Rajkot, India, Crossword manufactures small tractors under the Nissan, Atmak and
Captain brand names.[5]

Eicher
Main article: Eicher Motors

In 1949, Eicher GoodEarth, was set up in India with technical collaboration with Gebr. Eicher a
of Germany, imported and sold about 1500 tractors in India. On April 24, 1959 Eicher came out
with the first locally assembled tractor from its Faridabad factory and in a period from 1965-
1974 became the first fully manufactured (100% indigenization) tractor in India. In December,
1987 Eicher Tractors went public and in June, 2005 Eicher Motors Limited sold Eicher Tractors
& Engines to a subsidiary of TAFE called TAFE Motors and Tractors Limited.

Eicher also produced tractors under the Euro Power and Eicher Valtra brands under license
from Valtra, an AGCO brand.[6]

Escorts (Escort, Powertrac and Farmtrac)

Escorts Ltd began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and
total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Ford (Ford - New
Holland) was sold in 1992. Ford Motor Company proper quit the tractors business, but the name
was allowed to continue as per agreement until 2000, when Escorts relabeled its Ford models
under the Escort brand. Escort manufactures produces tractors in the 27-75 HP range and has
already sold over 6 lac tractors. Its tractors are marketed under three brand names, Escort,
Powertrac and Farmtrac. The Escorts Group, is among India's leading engineering
conglomerates operating in the high growth sectors of agri-machinery, construction & material
handling equipment, railway equipment and auto components.

HMT Tractors
Hindustan Machine Tools

HMT is a large public sector unit and began manufacturing Agricultural Tractors in 1972 under
the HMT brand name with technology acquired from Zetor of the Czech Republic. It
manufactures its tractors in Pinjore, Panchkula in a large factory that also manufactures machine-
tools, and Hyderabad It has a capacity of 20,000 tractors per annum. In the Machine-tool
company is a large foundry. It produces tractors in a range from 25 HP to 75 HP. HMT has also
exported tractors to the USA under the Zebra brand, which were marketed by Zetor distributors
and dealers there. The company is controlled by the Ministry of Heavy industry that provides to
the public its financial performance.

Indo Farm

www.indofarm.in Founded in Baddi, Himachal Pradesh, India in 1999, Indo Farms builds
tractors in the 33 to 90 hp ranges. company is also manufacturing 9 to 18 ton cranes and 15 to 50
kv silent gen sets. ursus poland is its technical partners. indo farm tractors are becoming famous
in indian tractor customers because of their better working performence, quality and resaonable
prices. company is exporting their products to many developed countries like: new zealand, uk,
poland, germany etc. tractor manufacturing is fully computerised and marketing team is very
dedicated and experienced. [7]

John Deere

In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in
Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private
Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under
the John Deere name for worldwide sales.[8][9]

In 2005, Deere & Company acquired nearly all the remaining shares in this joint venture. The
new enterprise, is known as John Deere Equipment Private Limited. The factory currently
produces tractors in of 35, 38, 40, 42,45, 50, 55, 65, 75 and 89 HP capacities for domestic
markets and for export to the USA, Mexico, Turkey, North and South Africa, and South East
Asia. Pune factory started to produce new 55 to 75 Hp 5003 series tractors for European market
in 2008.

John Deere India Private Limited is a subsidiary of Deere & Company, USA in India. Its
factory, located at Sanaswadi, Pune, manufactures 5000 Series agricultural tractors. The Indian
operations of Deere & Company include a technology center located at Magarpatta City Pune
and John Deere Water Vadodara. The technology center provides services in the areas of
Information technology, engineering, supply management, embedded systems and technical
authoring for company’s operations world wide. John Deere Water, formed by the acquisitions
of Plastro Irrigation Systems, T-Systems International, and Roberts Irrigation Products, is one of
the leading irrigation companies in the world today.

Mahindra Gujarat Tractor Limited

The company was originally incorporated in the state of Gujarat in 1963 with technical
collaboration with Motokov-Praha of Czechoslovakia as Gujarat Tractor Corporate Ltd. It was
taken over by Mahindra & Mahindra Limited on 17 December 1999 (holds 60% equity) and re-
christened Mahindra Gujarat Tractor Ltd as part of Mahindra Tractors. The company is engaged
in manufacturing of tractors in a range of 30-45 hp which are marketed under Shaktimaan
brand.[10] They were previously marketed under the Mahindra Gujarat name, and before that
the Hindustan name.

Mahindra & Mahindra

Main article: Mahindra Tractors

M&M's Farm Equipment Sector origins lie in a joint venture in 1963 between the Company,
International Harvester Inc., and Voltas Limited, and was named International Tractor Company
of India (ITCI). In 1977, ITCI merged with M&M and became its Tractor Division. After
M&M's organizational restructuring in 1994, this division was called the Farm Equipment
Sector. The Farm Equipment Sector has also ventured into manufacturing of Industrial Engines.
M&M Industrial engines are used for various applications like generator sets, industrial,
construction, marine, compressors, etc. These engines are manufactured at the Company's engine
assembly plants at Kandivli and Nagpur. M&M has two main tractor manufacturing plants
located at Mumbai and Nagpur in Maharashtra. Apart from these two main manufacturing units,
the Farm Equipment Sector has satellite plants located at Rudrapur in Uttarachal and Jaipur in
Rajasthan. The Farm Equipment Sector as reported by the Company has a dealer network of over
450 dealers. This dealer network is managed by 28 area offices, situated in all the major cities
and covering all the principal states and M&M tractors has sold more than 13,00,000 tractors
since its inception. M&M's Farm Equipment Sector is perhaps the largest exporter of Indian
tractors to the USA and the west. And in a reversal to earlier trends of Indian tractor
manufactures with joint ventures with western tractor companies, M&M, in 2004 announced
that they had bought majority stake (80%) in Jiangling Tractor Company, and renamed it
Mahindra Jiangling Motor Co Group (JMCG). This is the first instance of Indian tractor
industries participating in India's reverse FDI. The plant in China reportedly has a production
capacity of 12,000 tractors annually.

In March 2007, M&M bought a controlling 43% stake in the Mohali-based tractor firm Punjab
Tractors (Swaraj) that will reportedly increase M&M's share in the domestic farm equipment
market from just over 30% to 40%. The 43% stake includes 29% owned by private equity firm
Actis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its
stake to 64.6%.[11]
MARS Farm Equipments Ltd.

Originally established in 1976, the MARS Group is engaged in manufacturing/marketing of

dump trucks, loaders, foggers, and agricultural tractors and attachments. Based in Lucknow,
U.P., it began manufacturing two mini-tractor models under the Marshal name in 2005,
Captain DI 2600 of 25 HP and Trishul MT DI 625 10 HP. [12]

New Holland
Main article: New Holland Ag

New Holland Ag's entry into India was facilitated by FIAT's acquisition of Ford-New Holland in
1991. By 1998 New Holland Ag. (India) completed the construction of a new plant in Noida,
near New Delhi, with a capacity of 5000 tractors in the 35 - 75 hp range. In 1999, New Holland
Ag.'s parent company FIAT bought 70% of holdings of Case Corporation and created Case New
Holland Global (CNH one of the top three tractor/agricultural/construction machinery
manufacturers in the world), the new holding company New Holland Ag. (India). In 2000, the
capacity of the Noida plant rose to 12,000 tractors per year and in 2007 the company
manufactured 24,000 tractors for the domestic and export markets.New Holland India exports
fully-built tractors to 51 countries in Africa, Australia, South-East Asia, West Asia, North
America and Latin America.The India plant of New Holland was originally built in 1998 to cater
only to India domestic market. However due to slow down of economy by year 2001-2002 and
slump in domestic demand, it became a challenge to utilize the installed capacity of the
factory.Hence the company started looking its market beyond India borders. Its then CEO Mario
Gasparri guided the vision and handed over the task of overseas business to its manager Bhanu
Sharma. The efforts paid off well. Bhanu Sharma in capacity of Head-International Business
Operations, took op the export volumes from the level of almost nil in 2003 to 8000 units in year
2007. The export business last year in 2007 contributed over 50% of the company business of
total USD 250 millions.This also made New Holland the second largest tractor exporter from
India after John Deere. In year 2007, India exported around 32,000 tractors of which 25% share
was of New Holland.

Preet Tractors

Preet Agro began manufacturing tractors in 2002 in Punjab, India. They currently manufacture
in the 35-70 hp range.[13]

Punjab Tractors Ltd (Swaraj Tractors) In 1965, Government of India research institute Central
MechanicalEngineering Research Institute, Durgapur, WB initiated design and development of
Swaraj Tractor based on indigenous know-how. In 1970, Punjab Government acquired the
Swaraj tractor's design and established Punjab Tractors Limited (PTL). It was India's first large-
scale totally indigenous project. The company exports Tractors to various countries including
USA. It manufactures nine models of tractor and several models of combine harvesters.

The manufacturing units are located at Mohali District, Asron Village of Nawanshahar District and Nabha of Patiala
District, Punjab. Today Swaraj tractor is the second most selling brand of tractors in India after Mahindra.More
than 800000 lacs tractor sold.
The popular models sold under SWARAJ brand are: SWARAJ 744, SWARAJ 735, SWARAJ 855, SWARAJ 978,
SWARAJ 834, SWARAJ 939, SWARAJ 733, SWARAJ 724, SWARAJ 722. Swaraj also manufactures Forklifts
and Combines, which are assembled in their Mohali Plant. a private equity firm acquired 29% of Punjab Tractors in
mid-2003 from the Punjab Government. In March 2007, and currently subject to the receipt of requisite approvals,
M&M bought a controlling 43% stake in Punjab Tractors Ltd. that will reportedly increase M&M's share in the
domestic tractor market from just over 30% to nearly 40%. The 43% stake in Punjab Tractors includes the 29%
owned by Actis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its share in
Punjab to 64.6%.

Same Deutz-Fahr Ltd.

Main article: Same Deutz-Fahr

SAME Tractors is an USD 4 billion company for past 7 Decades of Rich Experience in
Agriculture Segment. It was found by Francesco Cazzani along with his brother way back 1927.
Greaves Ltd, joined in collaboration with SAME for manufacturing of tractors in 1999 under
the SAME-Greaves brand. By 2000, Greaves sold its shares to SAME and formed 50:50 Joint
Venture as SAME Greaves Tractors Ltd.

By 2002, Greaves Exited from SAME, SAME Greaves has become a wholly owned subsidiary
of SAME, Italy. The company has been renamed as SAME DEUTZ Fahr Group India, Ranipet,
Tamil Nadu, India.

Sonalika (International Tractors Ltd.)

Main article: Sonalika Tractors

International Tractors Limited was incorporated on October 17, 1995 and began
manufacturing tractors designed by Central Mechanical Engineering Research Institute
(CMERI). ITL currently is manufacturing Sonalika tractors between 30 HP to 90 HP, and the
CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agricultural of
France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault
Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has a
strong presence in India market producing its Crop Tiger range of Combine Harvesters in a plant
in Faridabad (near New Delhi) since 1992. CLASS has opened a new plant in Punjab at Morinda
in 2006. Sonalika is now having collabration with YANMAR(Japan), and raised its production to
200 tractors per day.

Standard

Standard Combine began building tractors in Barnala, Punjab, India. In Standard Tractors,
tractors are being manufactured in the range of 35, 45, 50, 60, and 75 HP with respective model
names: Standard 335, Standard 345, Standard 450, Standard 460, and Standard 475. Engines for
all these tractor models, except the last one, are manufactured within the plant as ‘Standard
Engines’, in specific names – SE 335, SE 345, SE 450 and SE 460, respectively. All the above-
mentioned models of Standard Engines have shown compliance to the TREM-III emission
norms, as have been verified by the ARAI. However, two new variants of tractor of 35 hp
(Standard 335-I) and 45 hp (Standard 345-I), equipped with famous Perkins engines (assembled
within the Standard Tractors plant), and two completely new models of tractor of 30 hp
(Standard 330) and 40 hp (Standard 340) are on the verge to be launched. Besides these, three 3-
wheelers (two passenger-carriers and one cargo), one 4-wheeler (cargo), a crane, an electric 3-
wheeled mini-car, and two 2-wheelers (scooters) are either in the process of development or on
the verge of launch from the Standard Tractor Division.[14]

TAFE
Main article: TAFE Tractors

Tractors and Farm Equipment Limited (TAFE) was established in 1961 to manufacture and
market Massey Ferguson tractors and related farm equipment in India. AGCO, the owner of
Massey Ferguson, now owns 24% of TAFE. Tractors are built and sold in India under both the
TAFE and Massey Ferguson brands, and exported under both brands as well. In 2005, TAFE
bought the Eicher Motors tractor and engine division.[15][16]

VST Tillers

VST Tillers was set up in 1965 in Bangalore, India. In collaboration with Mitsubishi
Agricultural Machinery of Japan, they manufacture 18HP tractors under various brands,
including Mitsubishi-Shakti', Shakti, Eurotrac-VST and Euro-Trac. They have been exported
to Asia, the Middle East, Europe and the USA.[17] in odisa it was introduced in the year 1987 with
the help of m/s sahoo agrochem Cuttack 753009,

Previous Indian Tractor Companies

Auto Tractors Ltd., Pratapgarh

Had manufacturing plant at Pratapgarh (U.P.) and were making tractors with Leyland engines.

Asian Tractors Ltd

Began building tractors in 1989 from their own designs.[18]

Ford Tractors

Ford (formerly Ford Tractor Division) began producing Ford Tractors in India in 1972 with a
tie up with Escorts. In 1986 Ford acquired New Holland and tractor operations was transferred
to Ford-New Holland and made into an independent corporation. In 1991, Fiat began an arranged
purchase of Ford-New Holland that was completed in 1993, ending Ford Motor Company's long
history of tractor production. The deal required that New Holland/FIAT stop using the Ford
name. New Holland India Pvt began production of tractors in India in 1998.[19]

Harsha Tractors

In 1975, Harsha Tractors Ltd began manufacturing tractors in conjunction with Motoimport of
Russia.[18] Tractor production never amounted to much, and has since ceased.] Haryana Tractors
Ltd
As a part of Pratap Steel Rolling Mills Ltd., Haryana began building tractors from their own
designs in 1983.[18]

Kirloskar Tractors

Founded in cooperation with Deutz-Fahr of Germany in 1974.[18] It has since ceased to

manufacture tractors. However, the company continues to manufacture engines under license
from Deutz.

Pittie Tractors

Pittie Tractors was set-up by a young and dynamic engineer - Shrikant Pittie and started out as
Pittie Tools. The Pittie family are prominent industrialists in Pune and the family set-up the first
private industry in Pune - The Raja Bahadur Motilal Poona Mills Ltd. in 1893. Pittie Tractors
indigenously developed and manufactured tractors and was well set to capture a large share of
the market in India. However, due to an unfortunate labor strike at one of its critical vendors,
followed by a similar strike at its own plant, the company lost nearly a year of production. As a
result, the company fell into financial difficulty and ultimately had to wind-up operations.

United Auto Tractors Ltd.

Began in 1986 in conjunction with Uzina Tractorul of Romania.[18]

TECHNOLOGICAL STATUS OF THE

TRACTOR INDUSTRY.
1The tractor industry, in India, has completed, more than, 25 years During this
period, there has been a large growth, in it's production capacities and
capabilities A wide choice of competitive models, ranging from 12 to 75 HP, is
now available, to the farmer. The tractor industry, represented by the successful
units, has now attained a maturity, as judged by it's, capacity and capability, to
expand production, as and when, needed, to meet any sudden surge in
demand The successful units have, also, developed, expertise and capability,
for effecting horizontal transfer of technology, to other developing
countries
2 The ancillary and support industries have, also, grown with the tractor units and,
have developed necessary capabilities, to supply components and subsystems
in the required quantities The servicing and maintenance, facilities, have also,
been well established.
3.3 Indian tractor industry, by and large, has yet to develop capacity and capability
to innovate and create new basice designs, of tractors, on it's owa The time and
expense, involved, in indigenous development, of these products, have acted
as a deterrent to their innovative efforts. Most of the successful units have set
up R & D facilities approved by the DSIR Though the R & D in industry lacks
the standards and the.depth commensurate with Indian's standard as a leading
tractor manufacturing country, which India is today. Manufacturers appear to
be satisfied with, the limited role, of their R & D establishments, in improving the
existing products by minor modifications, in the aggregates to bring out new
models, prefer the case with the units who have a substantial foreign equity participatioa
Choose, an even earlier route of entering into collaboration, for new
models. Some progressive units, generally without foreign equity, have
developed capabilities to innovate and, have introduced new models, by
improving and/or upscaling some aggregates, in the tractors.

LATEST DEVELOPMENTS IN TRACTOR

TECHNOLOGY ABROAD
1 The recent developments, in tractor technology, that have taken place abroad,
are not always relevant under Indian conditions Some of the developments, for
instance, those which aim at increasing driver comfort, making tractors suitable
for large land holdings etc, are not necessarily appropriate under Indian
conditions More sophistication means higher price which may not be acceptable
to the local farmers. On the other hand, developments such as those
aimied at improving fuel economy and, those aimed at improving, reliability,
ease of operations, are suited to the Indian conditions.
4.2 Tractor engines:
Developments, relating to the engines, are: improvement in fuel efficiency,
which is important for us also and turbocharging of engines, to reduce the
weight, of the engines, which is not relevant under local conditions, as,
turbocharger is a delicate high speed mechanism which is difficult to maintain
and, requires careful operation. Development aimed at increased life of critical
engine parts, such as the use of ceramics, substituting diesel fuel, wholly or partially,
by fuel like compressed natural gas, may be suitable to Indian
conditions.
4.3 Transmission and final drive:
The developments relating to transmission system are:
i) More number of gears and, higher maximum speed,
ii) Synchronnesh gears
iii) Hydrostatic hydrodynamic transmission
iv) Four wheel drive
The developments listed at iii, & iv are not quite suitable to Indian conditions, where
unlike in the advanced countries, high initial cost of tractors, employing these features,
may not be acceptable to farmers. There is however, scope for increasing the haulage
speed, upto, a maximum of 40 Km/hr.
4.4 Hydraulic system:
Hydraulic system, of implements control, is now well developed in India Electronic
sensing devices have now come into use, abroad, for sensing movement
of the linkages draft load and depth of operatioa This is being developed, by
some units, in the country.
4.5 Steering system:
Hydraulic or power steering is now common, on tractors abroad This is a use
ful development which reduces the turning effort ZF steering have taken up
their manufacture in the country and this would be available to the tractor
manufacturers However, its application may be limited on tractors because of
its extra cost
4.6 Ergonomics and operator safety:
Ergonomics and, operators, safety and comfort, have received considerable
attention abroad, particularly, noise and vibration control and, operator seating
and space Transmission gear teeth are now ground abroad, to reduce noise
Exhaust muffle design have received attention here, but grinding of gears is not
likely to be introduced, as this is expensive Studies for reducing vibrations are
quite relevant, under Indian conditions Since most of the tractors used, in the
country, are designed abroad, the operator space and controls have been
designed to suit the anthropometric measurements, of 95% of the driver population,
in those countries It is necessary to redesign the operator space, to suit
the operators, in our country.
4.7 Size and weight of tractor:
In some of the advanced countries, particularly, (ISA there is a trend for using
higher H.P. tractors, the current popular size being 100H.P. Efforts are also
being made to reduce the weight of the tractor. These are not relevant under
local conditions, because of the small land holdings of the farmers, which cannot
sustain a higher priced tractor and weight is not a problem for those trae
tors, which are mainly used for dry land cultivatioa There may be a need to
develop low weight models for wet land cultivation in India

.RECOMMENDATIONS
.1 Apart from the suggestions given above, for adapting certain developments
relating to the tractor technology, other measures are necessary, to improve the
efficiency of the tractors, as well as, to encourage the tractor industry, to concentrate
on developing new designs and products with their own efforts, rather
than, looking for foreign collaboration, whenever a need arises for introducing a
new model in the market
2 Improvement in fuel efficiency:
Improving fuel efficiency, of the tractor engines, is a matter of national importance,
as any saving effected in fuel consumption would reduce the drain on
foreign exchange and therefore should receive utmost priority from all concerned
Reducing the specific fuel consumption is an expensive and time consuming
exercise and requires a specialised expertise and knowledge, which is
not readily available with the industry. It is suggested that assistance from
organisations like ARAI, Ricardo GK and AVL Austria, which conduct research,
of this type would be desirable, to get the desired results, quickly.
Studies covering suitability and optimum utilisation or of tractors, of different
HPs, for different sizes of land holdings, different soils or different crops should be
sponsored Such studies could be the base for incentives for encouraging,
techno-economically efficient, tractor models
.3 Improvement in quality of tractor implements:
All the benefits, that one can expect, from a fuel efficient engine, can be
nullified if matching implements are not used with the tractor. If, properly
designed implements, matched to the tractors are used 20% to 30% improvement,
in performance efficiency and proportional fuel economy can be
achieved Production, of tractor implements, is reserved by the Govt, for the
small scale sector, which, in many cases, need upgradation, in respect of design
and materials used. To achieve this, it is suggested, that each tractor manufacturer,
should design implements properly matched to their tractors and, of
standardised quality and make the knowhow for the same, available to the
implement manufacturers and adopt a system, of quality audit and monitor
ing, to ensure production of desired quality implements
.4 Incentives for innovation:
Because of, the expensive and time consuming, steps required for developing
original design of tractors and, introducing them in the markets, entrepreneurs
choose the easier option of importing the designs. Suitable incentives, for
indegenous development, of new tractor model, should be provided. This is
necessary to encourage R&D, in tractors, in India
.5 Development of accessories:
Development of accessories, for the following operations needs
encouragement:
i) Potato planting and harvesting
ii) Rice transplanting
iii) Sugarcane harvesting
Fiscal incentives, suggested, in 5.4 above, may, also, be made available for their
development
5.6 Tractor industry, having achieved the level o*f development, of being able to
cater fully to the indigenous market; should now concentrate also, on development
of tractor models suitable for exports:

Tractor industry to maintain its growth momentum-----ICRA

The strong recovery witnessed in the tractor market during 2009-10,  after a period of cyclical
downturn, has continued in the current fiscal with the Apr-Dec 2010 (nine months 2010-11)
period reporting a growth of 25.2 percent over the corresponding previous year.
The key factors enabling the demand growth during the current fiscal have been good south west
monsoons in majority of the states resulting in robust farm sector growth (expected to be around
5.4 percent for 2010-11), strong rural liquidity sustained by higher minimum support price
(MSP) for crops and double digit food inflation supporting prices of agricultural produce,
enhanced employment opportunities under National Rural Employment Guarantee Act
(NREGA) and other Government schemes leading to shortage of migrant labour, adequate credit
availability and replacement demand. These factors apart, non-agricultural use of tractors (for
haulage in construction and infrastructure projects) continued to increase, benefiting tractor
demand. Also, with infrastructure projects and rural employment schemes increasing
employment opportunities, availability of labor for agricultural activities continued to decline,
persuading even farmers with medium-sized land holdings to either rent or purchase tractors.

Subrata Ray, Senior Vice President and Co-Head-Corporate Ratings, ICRA, says: “Tractor sales
are expected to remain healthy in fiscal 2011-12 mainly on back of good rabi crop expected this
time around and continuing firmness in the prices of agricultural products as reflected in food
inflation running in double digits. Moreover, improving farm mechanisation levels (with cheap
labour availability in rural areas declining), increasing non-agricultural use of tractors, higher
credit disbursements for agriculture and Governmental focus on the farm sector (larger budgetary
allocations) are also expected to encourage tractor sales. The industry’s profitability is expected
to remain healthy on back of robust demand and Government support in spite of the high
competitive intensity and vulnerability to adverse movement in commodity prices and irregular
monsoons”.
While some states in the northern region have achieved high levels of tractor penetration and
farm mechanisation, on an all-India basis, the penetration remains low, which along with the
current shortage of farm labor and consequently rising labour costs, are expected to lead to
greater farm mechanisation levels and use of tractors. The long-term prospects for the Indian
tractor industry hinge on agricultural growth and Government support in areas such as
financing availability, tax exemptions and fiscal stimulus for rural development. Overall, ICRA
expects the long-term growth rate for the Indian tractor industry to trend around 8-10 percent
marginally higher than the historical average of 6-8 percent, supported by increasing tractor
penetration. The profitability of tractor players is expected to remain healthy on back of the
robust tractor demand and trend in favor of higher HP tractors. However it will remain exposed
to adverse movements in commodity cycles and irregular monsoons. In addition, the capacity
addition plans announced by various tractor players are expected to put pressure on their
profitability indicators with the increase in supply of tractors.

As commercialization of agriculture grew in intensity in the mid-to-late 19th century the British
Raj and the local legislatures and provinces began investing in agricultural development through
support and establishment agricultural research farms and colleges and large scale irrigation
schemes yet the level of mechanization was low at the time of independence in 1947. The
socialist oriented five year plans of the 1950s and 60s aggressively promoted rural
mechanization via joint ventures and tie-ups between local industrialists and international
tractor manufacturers. Despite this aggressiveness the first three decades after independence
local production of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor production was
nearly 140,000 units per year and by the late 1990s with production approaching 270,000 per
year, India over-took the United States as the world's largest producer of four-wheel tractors with
over 16 national and 4 multi-national corporations producing tractors today. Despite these
impressive numbers FAO statistics estimate that of total agricultural area in India, less than 50%
is under mechanized land preparation, indicating large opportunities still exist for agricultural
mechanization.[1]