The tractor industry is on track to achieve record exports in FY23: Hemant Sikka

The demand has been most visible in Europe and the United States, where demand for Indian tractors has exceeded expectations.

The Indian tractor industry derives approximately 10-15% of its revenue from exports. In addition to a superb domestic performance over the last three years, the tractor industry has seen consistent growth in exports. According to data from the Tractor and Mechanization Association, the industry exported 89,192 tractors between April and November of the current fiscal year (FY) 2022-2023, up from 85,281 units during the same period in FY 2021-22.

The tractor industry finished FY 2020-21 with a 21 per cent growth rate, selling a record 899,000 lakh-plus units. While final figures are awaited, the FY23 growth rate is expected to be robust, driven by a combination of factors such as a consistently healthy monsoon, improved farm cash flows across regions, higher crop realizations and prices, and the government's emphasis on procurement.

The industry has done better. According to Mahindra & Mahindra (M&M), the company exported 12,500 units in FY21. Last year, company exports increased by 66 per cent to 17,600 units, and it is expected another 20 per cent increase this year. Similarly, tractor sales in the domestic market are expected to exceed all expectations and projections during FY23. Currently, the company is exporting to the United States, Europe, Australia, Brazil, and a few other developed markets around the world.

The demand has been most visible in Europe and the United States, where demand for Indian tractors has exceeded expectations. In many countries, the 'Make in India' brand is established. The United States currently accounts for 25.2% of tractor exports, followed by Nepal (7.3%), Bangladesh (6.5%), and Thailand (5.4 percent). Brazil and Turkey also make significant contributions to export sales.

Furthermore, exports have increased primarily due to the competitive pricing of locally manufactured farm machines, which offer better technology, more comfortable cabins, and AC-equipped tractors at a lower cost than their foreign counterparts.

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