M&M targets marginal farmers to increase tractor market share

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Mumbai | Published: August 29, 2017 4:08:10 AM

With the launch of an affordable range of new tractors under the brand name “Trakstar”, the country's leading tractor seller, Mahindra and Mahindra (M&M), is targeting marginal farmers who usually cannot afford tractors.

Trakstar would encompass products in the 30-50 horse power segment. Rajesh Jejurikar, president – farm equipment segment, M&M, said the new Trakstar models will be over 5-7% cheaper than the tractors that are currently in its portfolio. (Reuters)

With the launch of an affordable range of new tractors under the brand name “Trakstar”, the country’s leading tractor seller, Mahindra and Mahindra (M&M), is targeting marginal farmers who usually cannot afford tractors. Trakstar would encompass products in the 30-50 horse power segment. Rajesh Jejurikar, president – farm equipment segment, M&M, said the new Trakstar models will be over 5-7% cheaper than the tractors that are currently in its portfolio. “While other regional players sell cheaper tractors, too, most don’t provide the facility to finance the buyer; we, on the other hand, will provide better and cheaper methods to finance the purchase,” added Jejurikar.

Trakstar will be manufactured by the company’s 60:40 joint venture with the government of Gujarat, Gromax Agri Equipment or Mahindra Gujarat Tractor, as it was named earlier. The company, however, does not expect a sudden rise in volumes due to the launch of Trakstar products. It is going to invest around Rs 150 crore in the Trakstar brand over a period of 3-5 years. Gromax’s Vadodara plant has a capacity of a mere 3,500 units annually, which contributes to a market share of around 0.5% of the domestic market. This will be the third brand under which the company will sell tractors apart from the M&M brand and the Swaraj brand of tractors. The company’s overall tractor market share – including all the brands – accounted for 45.8% of the country’s tractor sales in the April-June quarter of the current fiscal. Jejurikar expects the tractor industry to growth by around 10-12% this financial year. “Gromax will be an important element of our journey of transformation towards a higher penetration of farm mechanization, enabling farmers to double their income.

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