New Delhi, according to Swaraj Engines, the government's focus on improving the state of agriculture in India and various initiatives taken by it to drive higher rural incomes are likely to help maintain the demand momentum for tractors despite the Industry sales have seen a 7 percent decline. Limited.
The company, which supplies diesel engines for tractors manufactured by M&M Swaraj Division, in its annual report for 2023-24, said the growing horticulture segment in the country also offers good opportunities to increase penetration of tractors in the retail market. power (HP).
"The domestic tractor industry for FY24, at 8,75,700 units, recorded a decrease of 7 per cent over last year's (FY23) 9,45,300 units, mainly due to erratic and uneven distribution of rains that affected Kharif production, along with the high industrial base of FY23," it said.
Regarding prospects and opportunities, Swaraj Engines in its management discussion and analysis said that factors such as increasing affordability with adequate availability of finance, increasing demand for agricultural mechanization due to increased labor shortage and Emergence of newer technologies in the agricultural sector is likely to sustain the demand momentum for tractors.
"Furthermore, the government's continued focus on improving the state of agriculture in India and various initiatives taken by it to drive higher rural incomes through periodic review of Minimum Support Price (MSP), monetary support to marginal farmers , crop insurance, promotion "Diversification into high-value crops, agricultural acceleration fund to promote technological advancement in agriculture, etc., will bode well for the industry to grow in the medium and long term," he said.
In this context, the company said: "The company's engine business is likely to advance in tandem with the industry."
Swaraj Engines said the Indian tractor industry, the world's largest by volume with a mix of Indian-origin and international manufacturers, has traditionally been segmented by horsepower (HP) broadly - low horsepower up to 30 HP , medium segment from 30 HP to 50 HP. HP, and the upper segment of more than 50 HP.
“Over time, the medium and high horsepower segments have become popular due to the versatility of tractors and the evolution of farming practices, especially for farmers with large holdings,” he said.
Furthermore, the growing horticulture segment in the country also offers good opportunities to increase the penetration of tractors in the lower HP market segment with cost-effective products, the company added.
The company, which supplies diesel engines for tractors manufactured by M&M Swaraj Division, in its annual report for 2023-24, said the growing horticulture segment in the country also offers good opportunities to increase penetration of tractors in the retail market. power (HP).
"The domestic tractor industry for FY24, at 8,75,700 units, recorded a decrease of 7 per cent over last year's (FY23) 9,45,300 units, mainly due to erratic and uneven distribution of rains that affected Kharif production, along with the high industrial base of FY23," it said.
Regarding prospects and opportunities, Swaraj Engines in its management discussion and analysis said that factors such as increasing affordability with adequate availability of finance, increasing demand for agricultural mechanization due to increased labor shortage and Emergence of newer technologies in the agricultural sector is likely to sustain the demand momentum for tractors.
"Furthermore, the government's continued focus on improving the state of agriculture in India and various initiatives taken by it to drive higher rural incomes through periodic review of Minimum Support Price (MSP), monetary support to marginal farmers , crop insurance, promotion "Diversification into high-value crops, agricultural acceleration fund to promote technological advancement in agriculture, etc., will bode well for the industry to grow in the medium and long term," he said.
In this context, the company said: "The company's engine business is likely to advance in tandem with the industry."
Swaraj Engines said the Indian tractor industry, the world's largest by volume with a mix of Indian-origin and international manufacturers, has traditionally been segmented by horsepower (HP) broadly - low horsepower up to 30 HP , medium segment from 30 HP to 50 HP. HP, and the upper segment of more than 50 HP.
“Over time, the medium and high horsepower segments have become popular due to the versatility of tractors and the evolution of farming practices, especially for farmers with large holdings,” he said.
Furthermore, the growing horticulture segment in the country also offers good opportunities to increase the penetration of tractors in the lower HP market segment with cost-effective products, the company added.
