Sales of agricultural tractors in India have grown steadily following the disruption of the 2019 general election, with minimal disruption form the Covid pandemic. Although rising costs, bad debts and high diesel prices are expected to see a modest fall in tractor sales this year, the market is expected to reach 1 million machines by 2026.
According to Off-Highway Research’s new report, The Agricultural Tractor Industry in India, there are many positives driving sales upwards. “Among favourable factors, credit availability, good monsoons, government support, the shortage of farm labour, replacement demand, rural prosperity, growth in farm mechanisation and rising demand for food grains and other agricultural produce are all important.”
However, it also acknowledged that there were headwinds in the long-term outlook for the sector. “Agricultural land holding in the country is reducing due to increasing family size and growing non-agricultural use of land on account of rapid urbanisation and infrastructure development, which impacts the viability of a tractor purchase,” said the report.
Off-Highway Research’s 84 page report on the agricultural tractor industry in the India is now available to subscribers to Off-Highway Research’s Indian Service. It is also available to buy on our online store. Click here for details.
It is believed to be the most detailed and in-depth report ever published on the subject, with analysis covering market size, market shares, market structure, production, distribution networks, equipment population, pricing, machines available and a five-year forecast.
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