Tractors in India are a major industry and significant contributor to its agriculture output gains.
In 1947, as India gained independence from the British Empire, the level of agriculture mechanisation was low. The socialist oriented five-year plans of the 1950s and 1960s aggressively promoted rural mechanisation via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite these efforts, the first three decades after independence local production of 4-wheel tractors grew slowly. By the late 1980s tractor production was nearly 140,000 units per year, and a prevalence rate of less than 2 per 1,000 farmers.
After economic reforms of 1991, the pace of change increased and by late 1990s with production approached 270,000 per year. In early 2000s, India overtook the United States as the world's largest producer of four-wheel tractors. FAO estimated, in 1999, that of total agricultural area in India, less than 50% is under mechanised land preparation, indicating large opportunities still exist for agricultural mechanisation.
In 2013, India produced 619,000 tractors accounting for 29% of world's output, as the world's largest producer and market for tractors. India currently has 16 domestic and 4 multinational corporations manufacturing tractors.
History 1945 to 1960
War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid-1940s. In 1947 central and state tractor organisations 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.In this period Massey Ferguson entered India With Massey Ferguson 35x and 135
1960–1970 By 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country.
1971 to 1980
By late 60's the government of India initiated the Green Revolution in India program and the need for mechanisation created more demands for farm tractors.To meet the initial demand the Government allowed lot of imports mostly from USSR and its Eastern Bloc neighbours. In addition 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 (and in year 2016 this company was shut down by the government of India). Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975–76
1981 to 1990
A further five manufacturers(Auto Tractors, Haryana Tractors, United Auto Tractors, Asian Tractors, and VST Tillers) began production during this period but only VST has survived in the increasingly competitive marketplace. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Than India – a net importer up to the mid-seventies – became an exporter in the 1980s mainly to countries in Africa.
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.
1997 to 1999
Five new manufacturers started production in this period. In 1996 Sonalika Tractors started its first tractor manufacturing plant in Hosiarpur, then in 1998 Bajaj Tempo, later renamed Force Motors, 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 by investing $US 75 million in a state-of-the-art plant at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Also during this time, Larsen and Toubro established a joint venture with John Deere of the United States, for the manufacture of 35–65 hp tractors at a plant in Pune, Maharashtra. And Greeves Ltd began producing tractors under similar arrangements with Deutz-Fahr of Italy. Captain Tractors has rolled out first indigenous Mini Tractor of 9.5 hp for small and marginal farmers. CASE now Case IH looking to develop a joint venture in India went into discussions with various Indian companies and in 1999 settled with New Holland Pvt Ltd. India for manufacturing CASE brand tractors and harvesting equipment at New Holland's facility.
1999 to present 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 expanded into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets.
In 2013, India produced 619,000 tractors accounting for 29% of world's output. It is the world's largest producer and market for tractors. India currently has 16 domestic and 4 multinational corporations manufacturing tractors. In 2014 Zetor come back in India and linked with the local tractor manufacture companies to supply 40 to 75 hp tractors on zetor brand name to other countries.
Characteristics, prevalence and market share
Market Characteristics: Despite the growing availability and sales in the higher HP utility tractors in the category 2 (50–100 HP) and even in category 3 (100–180 HP) the average HP remains between 40 and 45 HP. While the industry remains very competitive nationally and internationally and with ever increasing numbers of OEMs, the manufactures are offering quality improvements in engine efficiency and emissions, better selection in transmissions, power steering, etc., they have also managed to keep prices down by limiting offerings in digitalization (little or no use of engine control modules – ECM) of the engine-tractor, roll over protection systems as optional, and the other bells and whistles for operators that come as standard options elsewhere. Very competitive and widely available repair services due in part to keeping things simple (no ECMs, etc.). Sales are also driven as the "agricultural" tractors are widely used in providing commercial transport services in rural and peri-urban areas. The cost of a tractor and trailer are much less than the higher speed commercial truck offerings in the 1–5 ton sector. Prevalence: Tractors are getting widespread acceptance in India. Kotaks and ICRA reports estimate that nearly 4.3 million tractors were in operation, and 1 in 20 rural households owned a tractor in 2011. They project that the market will grow at 7% to 8% per year, and only 19% of Indian rural farming households that can afford a tractor have as yet purchased a unit. Designs that allow multi-functional use, adapted to local needs and rural constraints, are experiencing higher demands. Market Share: Five companies account for over 80% of the market share Mahindra and Mahindra (largest at 42.5% share) TAFE with 20% Rest Escorts, ITL-Sonalika John Deere.
Current manufacturers
ACE Tractors Action Construction Equipment Limited (ACE) began manufacturing of Tractors in 2009 by launching two models in 35 / 45 HP categories. At present it is manufacturing 3 models by introducing 55 HP models in 2011. And also manufactured crains, harvester etc. In Oct.2013 ACE Tractors reached a milestone of selling 2000 tractors in India and Nepal. ACE has its manufacturing plants in Faridabad (Haryana), Kashipur/Bajpur (Uttrakhand).
Agri-King Tractors and Equipments Pvt. Ltd. Established in 2010 at Majholi, Himachal Pradesh in Northern India, Agri King produces a few models of tractors, which seem to be based on Steyr Tractors or Basak tractors . The Agri King T44 40 HP model, Agri King T54 50 HP model, and Agri King 20–55 50 HP model with improved 24 speed synchro-mesh transmission. All feature Kirloskar engines.
Agrotrack Pauniya Tractors And Farm Equipment was founded in 2018 by C.A. Singh. Their history says AGROTRACK Tractor India was looking for company to assemble their tractors in India, and selected Pauniya. They assemble a limited number of models utilizing Kirloskar engines.
Akash Akash Equipments & Machineries Pvt, Ltd began building tractors in 2010. They are based in Faridabad, Haryana, and only assemble a few different low-horsepower models.
Angad Tractors
Apollo Tractors Apollo Tractors – Fieldtrack Earthmovers Pvt. Ltd began in 2017 in Kadi, Mehsana, India. It is a small manufacturer.
AutoNXT AutoNxt Automation began in 2022 in Kalher, Bhiwandi, Maharashtra, and is building electric tractors for the Indian market.
Captain Tractors Pvt. Ltd Captain Tractors had been established in 1994 in Rajkot by joint efforts of two brothers Mr. G.T. Patel and Mr. M.T. Patel based from village Sanali dist. Amreli (Gujarat). Today Captain Tractors manufacture mini tractors from 15 to 30 HP.
Cellestial eMobility Cellestial eMobility is another electric tractor manufacturer in India. They are based in Hyderabad.
Crossword Agro Industries Located in Rajkot, India, Crossword manufactures small tractors under the Nissan, Atmak and Captain brand names. .
D.K. Champion D.K. Diesels Pvt. Ltd was founded in 1998 and is based in the mini-tractor capital in India of Rajkot, Gujarat. They build mini-tractors up to smaller tractors, 10–28 hp.
Darsh DarshTrek and Darsh Belarus began in 2022 as a part of Darsha, Erisha Agritech Private Ltd., division of Rana Group. Darsh Belarus tractors are assembled and manufactured under license from MTZ and is based in New Delhi. DarshTrek tractors include some built by Captain Tractors, some electric, and others.
Eicher
In 1949, Eicher GoodEarth, was set up in India with technical collaboration with Gebr. Eicher of Germany, imported and sold about 1500 tractors in India. On 24 April 1959 Eicher came out with the first locally assembled tractor from its Faridabad factory and in a period from 1965 to 1974 became the first fully manufactured (100% indigenisation) 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.
Escorts
Escorts 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 relabelled its Ford models under the Escort brand. Escort manufactures produces construction and agriculture tractors in the 8-75 HP range and has already sold over 600,000 tractors. Its tractors are marketed under three brand names, Escort, Powertrac and Farmtrac.
In 2020 Kubota acquired 10% of Escorts, and is selling 40% of Kubota Agricultural Machinery India (KAI) to Escorts. In 2022, the ag company was renamed Escorts-Kubota Ltd, and tractors are also marketed under the Escorts-Kubota brand.
Farmer Tractor Based in Rajkot, Gujarat, Farmer Tractor is focused on the production the Farmer Tractor DI 1200, using a Greaves four stroke, direct injection, 12 HP diesel engine.
HAV HAV, or Hybrid Agri Vehicle, is a hybrid-engine tractor manufacturer based in Noida, Uttar Pradesh. Founded in 2020, they manufacture diesel & CNG – electric hybrid tractors.
Hercules tractors Swift Auto Engg Solutions Pvt. Ltd manufacture the Hercules brand of tractors in India. It is based in Ballabhgarh, Haryana.
HMT Tractors