Tractor supply companies are part of the automobile industry. They cater to the segment that includes mainly farmers who use these vehicles for agricultural activities. Apart from these there are also part time farmers, turf managers, those who operate nurseries who need these vehicles in either two wheel or four wheel drives. The tractors they supply are front hoe loaders, back hoe loaders, dumpers, excavators etc. Agriculture related uses apart, the tractors like back hoe loaders are also sold by the companies as earth moving and construction equipment.
In India, the share of tractors in power consumed by agriculture has increased from 7.5% in 1971-72 to over 42% currently. The sale of tractors has in fact been higher than the domestic production over the past couple of years. The competition is mainly between Mahindra and Mahindra, HMT, Eicher in India.
The tractor supply
companies have to keep coming up with newer models and new marketing
strategies to push sales and ward off competition from the used tractor
sellers and foreign brands. Companies usually have their strengths in
specific horse power categories and try to concentrate on these. Innovations
include designing tractors specifically for coastal terrain, hilly regions
and the plains areas.
As the customer becomes aware of the standards offered internationally with
the entry of foreign players like Renault and Caterpillar, the local
manufacturers are now becoming more quality conscious. The areas that they
are concentrating on include increased inspection and cleaning operations as
well as improvements in layout to reduce costs and improve efficiency.
The companies in
India are going in for tie ups with foreign companies to be able to reach
customers with requirements that they are not currently able to fulfill, in
terms of horsepower say in the 55HP to 85HP range or specialized utility
like tractors with treads. Not only the manufacturing but also the corporate
culture in the companies has undergone a change with an emphasis on informal
yet professional attitude.
A strong dealer network and an after sales service setup is very important
to lure and keep customers and in India it is Mahindra and Mahindra that has
the best network of dealers.
The tractor suppliers
concentrate on states that have a well developed irrigation system. In India
these states are Haryana and Punjab but as these states have already reached
a very high level of tractorisation, the suppliers are looking to tap the
potential of states like Maharashtra, M.P, and U.P.
Did you know ?
India accounts for one-third of total production of tractors in the world. Average growth of Industry is about 9%.
The national average of tractor density is 14 tractors per 1000 hectors of gross cropped area. Presently, 9 companies are producing tractors.
Tractor supply company ~ author L.S.Batra. copyright data 2004 Indianchild.com
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