With the domestic tractor market reporting a 15% degrowth this fiscal, Mahindra and Mahindra is hoping to rekindle some enthusiasm among farmers by launching two new tractor variants.
At the two extreme ends of the market – the lower end tractor below 20 HP to replace bullocks and the other in the top-end in the above 50 HP category to meet demand coming from some segments of the market not as affected by the monsoon deficit or from the non-agri segment.
These two segments have remained flat with no degrowth, Rajiv Relan SVP, sales and customer care, Swaraj division of Mahindra said.
The group's Swaraj brand launched a 60HP tractor 960FE and a 15 HP engine Swaraj 717 tractor, which were the two gaps in the Swaraj portfolio, Relan said. Around 25% of the large tractors are used for non-agri purposes, he pointed out.
While the sentiments are negative with some rains reported in parts of Maharashtra especially Marathwada in the last few days, the company is hopeful of things looking up post September with some of the rain hopefully sustaining for a few more days, “If September rains are okay then the industry numbers can look up,” Relan said.
While loans are available, some farmers are sceptical about investing while others are in debt especially in Marathwada where there have been two consecutive monsoon failure, he said. “The H2 sales had dropped a lot last year so the base effect will be low and some positive numbers can be expected in the second half,” he said.
The largest degrowth has happened in the 30 HP to 50 HP segment, which is the main bread and butter segment for the industry, he added.
The company has sold around 80,000 units of the Mahindra and Swaraj brand of tractors in the first five months while the entire industry sold around 2.04 lakh units compared to 2.44 lakh units same time last year. The company's market share is currently at 42%.