Hemant Sikka Predicts Record Tractor Exports In FY23

Over the last three years, the tractor industry has seen consistent growth in exports in tandem with phenomenal domestic performance. According to data from the Tractor and Mechanization Association, the industry exported 89,192 tractors between April and November of the current fiscal year 2022-2023, up from 85,281 units during the same period in FY 2021-22.

Tractor 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 significantly lower prices than their foreign counterparts.

In an interview with Autocar Professional, President of the Tractor and Mechanization Association, and Mahindra & Mahindra Farm Equipment Sector, Mr. Hemant Sikka commented, “The industry as a whole has done better. According to my estimates, exports will be close to 130,000 units in FY23. We currently export to the United States, Europe, Australia, Brazil, and a few other developed markets worldwide. According to Mahindra & Mahindra (M&M), our company exported 12,500 units in FY21. Last year, our exports increased by 66 percent to 17,600 units, and we expect another 20 percent increase this year.”

“In many countries, we have established the 'Make in India' brand. Our quality, application orientation, and pricing are well established, and I believe India has established itself as a brand for tractors up to 100 HP," Sikka commented further.

This trend of surging demand has been most visible in Europe and the United States, where demand for Indian tractors has exceeded expectations. Exports account for approximately 10-15% of the Indian tractor industry's revenue.

He went on to say that many manufacturers have developed competencies and product lines at competitive prices that are suitable for export markets. Currently, the United States accounts for 25.2 percent of tractor exports, followed by Nepal (7.3 percent), Bangladesh (6.5 percent), and Thailand (5.4 percent). Brazil and Turkey also contribute significantly to export sales.

"These days, agricultural machines are jam-packed with new features and updates. Some features that were previously unheard of have now become commonplace, such as four-wheel drive, dual-clutch, Slipto, auxiliary valves, and Power Take Off. These are some features critical for the tractor's application suitability, resulting in increased productivity and ease of use for farmers. "When a machine improves, it always creates a demand," Sikka elaborated.

Similarly, tractor sales in the domestic market are expected to exceed all expectations and projections during FY23, surpassing the previous decade's high peak in the fiscal year (FY) 2020-2021.

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