Mahindra & Mahindra Sets Sights on Lightweight Tractors to Expand Market Share

Mahindra & Mahindra Ltd. (M&M), India's largest tractor manufacturer, has set its sights on increasing its presence in the lightweight tractor market, both in India and globally. Despite the relatively modest size of the lightweight tractor market in India, M&M sees significant potential for growth.

In the financial year 2023, the Indian tractor industry achieved record sales of 9.44 lakh units, with the lightweight category accounting for approximately 50,000 to 60,000 tractors. M&M's market share in this segment is currently lower than its overall tractor industry market share of 41 percent.

Meanwhile, the Swaraj lightweight tractor series will be launched on June 2, with M&M's farm equipment division CEO expressing confidence in the brand's ability to gain market share in the segment. Following the initial launch in India, the Oja series will be introduced across various regions worldwide by the end of the calendar year.

Rajesh Jejurikar, the Executive Director and CEO of M&M's Auto and Farm businesses, acknowledged the untapped potential, stating, "So, there is an upside for us to gain share." To seize this opportunity, Mahindra & Mahindra, along with its Swaraj brand of tractors, will introduce a lightweight series. M&M's lightweight series will be named "Oja" and will be globally launched on India's Independence Day, August 15, with the aim of gaining volumes and market share in international markets as well. Jejurikar particularly highlighted North America, where the small tractor segment, especially those with less than 50 Horse Power, represents the largest segment within the overall market.

Also Read: Mahindra & Mahindra Soon to Launch Mahindra Oja Tractors Globally

Jejurikar identified South-East Asia, particularly ASEAN countries, as a significant opportunity for expansion. He emphasized that M&M currently does not have a presence in ASEAN but believes there is substantial potential to export and develop business in the lightweight tractor market in these countries. The increasing mechanization of agriculture, scarcity of farm laborers, and demand for tractors with different horsepower are driving tractor sales in ASEAN countries, where smaller and customized tractors are preferred due to smaller farmland sizes.

For the financial year 2023, Mahindra & Mahindra witnessed a 15 percent growth in exports, reaching 4,07,545 units. Looking ahead to the financial year 2024, Jejurikar expects the overall tractor industry to grow in the low single digits, considering factors such as sentiment, rainfall, and government spending in rural areas that will drive demand. While M&M remains cautiously optimistic at this early stage of the year, Jejurikar expressed confidence in gaining market share and achieving higher growth.

Also Read: Mahindra & Mahindra Forecasts Low Single-Digit Growth for Tractor Industry

As Mahindra & Mahindra aims to expand its footprint in the lightweight tractor market, the company anticipates benefiting not only from the domestic market but also from opportunities in North America, ASEAN countries, and other parts of the world where demand for lightweight tractors is on the rise.

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