Indian tractor industry is largest in the world. Indian agriculture GDP is 4 %. More than 3 lacks tractors sold per year in Indian market. International market is also favorable for Indian tractors as more than 60000 tractors sold in countries like USA, Turkey, Malaysia and parts of Eastern Europe in the year of 2010-11. Major tractor manufacturers in India are Mahindra & Mahindra, TAFE, Sonalika, Escorts, New Holland, and Force Motors & VST.

Statistics showed that tractor market for 31-40 HP is more than tractors of >51 HP. Medium size market for tractors with capacity 21-50 HP as 40000-80000 tractors sold per year in India. However, there is another big segment of mini tractors in India comprises farmers of low land holding (2-10 acres).

Government of India released National Automotive Testing and R & D infrastructure Project to facilitate development of mass production of high quality, automotive farming products.

Farm Mechanization

As we know that increasing labor scarcity is one of major issue in today’s farming, so farm or agriculture mechanization becomes important. In addition, increase in productivity and reductions in production cost are some of the reasons for farm mechanization. Tractors play important role in this segment. Drones, soil sensors, agriculture apps are part of farm mechanization.

Challenges of Tractor Industry

Looking to the challenges, we will conclude that monsoon dependence is one of major challenge faced by tractor industry. Although many predictions from Indian meteorological Department are proving to be true, changes in monsoon and lack of irrigation affects tractor industry in India.
Credit availability to farmers for farm mechanization is one of great challenge for tractor industry. However, Indian government and bank loans are helping for buying new or used tractors.

Tractor Finance

Banks in India and NBFC (Non-Banking Finance Company) provide loans to farmers for buying new or used tractors. Indian banks & NBFC providing loans are listed below.

• SBI’s Stree Shakti Tractor Loan (SSTL)
• State Bank Of India
• Axis Bank
• ICICI Bank
• Bank Of Baroda
• Oriental Bank Of Commerce
• HDFC Bank
• Bank Of India
• Central Bank Of India

Tractor Innovations

After first tractor launched in 1933, many ideas for making tractors more efficient came in reality. Diesel engine tractors are predominantly used in farming. However, recently New Holland launched hydrogen powered tractor (NH2). This NH2 tractor is a 106-hp working prototype able to perform all the tasks of a T6000 tractor while operating almost silently and emitting only heat and water. The fuel cell generates less heat than an internal combustion engine; offers a consistent output of power; and does not produce polluting nitrogen oxides, soot particles or carbon dioxide. The clean operation of the tractor brings added health benefits when working in confined areas, such as barns or greenhouses. (http://agriculture.newholland.com/ )

Also Escort launched ‘Anti-Lift Tractor’ with fuel efficient XP engine. Built around the themes of Driver Safety and Owner Savings, the new category of ‘Anti-Lift Tractors ' (ALT), made specifically for commercial haulage operators, are available in two models: ALT 4000 and ALT 3500. This is ALT technology version 1.0, which Escorts is planning to extend further to newer versions 2.0 and 3.0 in the long run to bring even more safe, robust and efficient products for this growing segment. (http://www.escortsgroup.com/ )

Another Idea of Self driven tractors is coming soon in recent future of Tractor Industry.