Project Report For Tractor Dealer

Over the forecast period, the Indian agricultural tractor market is expected to grow at a CAGR of 4.5 per cent (2021 – 2026). Due to lockdown restrictions, tractor sales in India marginally dropped in April 2020. Due to stronger Kharif sowing, good cash flows to farmers, timely and normal rainfall in the country during June and July, ongoing higher rural spending by the government, and freedom from lockdown restrictions, demand for agricultural machinery, notable tractors, soared in the final phases. As a result, the global pandemic has had no significant influence on the Indian agricultural tractor industry. Initiatives by the government in the areas of rural development and agricultural mechanisation and various factors Increased rural wages and a lack of farmworkers are likely to boost tractor production in the long run. India is one of the largest tractor marketplaces in the world, selling an average of 600,000 to 700,000 tractors per year. Tractor demand fell in 2015-2016 due to a drop in agricultural revenues, as major crop production and commodities prices fell due to lower government procurements due to adequate buffer stocks. However, because of the limited supply of farm labour and the advent of creative business models such as custom tractor hiring, India remains a viable tractor industry.

Because the cost of labour has been rising at such a rapid rate, and the cost of agricultural labour is directly connected to the cost of output, Asia-Pacific is regarded as one of the fastest-growing markets. These tractors take up less room and are more versatile because their engines have a capacity of less than 1,500 cc. Because of the ease of customisation, manufacturers are more likely to experiment with novel components and technologies in this category before moving on to higher-powered ones. These tractors are small, weighing less than 4,000 pounds and having a PTO horsepower of less than 40. Schools, parks, landscapers, cemeteries, and hobby farmers all use this high-production, cost-effective, and user-friendly compact tractor. In soft soil conditions, such as river basins, low horsepower tractors are ideal. Horticulture is the primary application for tractors with less than 40 horsepower. Due to farmers’ limited disposable money and high labour costs, demand for lower HP tractors is significant in developing countries. Due to the tiny size of farmland, farmers choose compact and customised tractors for agricultural applications. Furthermore, tiny tractors using less fuel help to empower small and marginal farmers. Governments in developing nations, like India, are boosting farm mechanisation by subsidising equipment purchases and facilitating bulk purchasing through front-end agencies.