The tractor manufacturing market in India is a crucial cog in the country’s agricultural sector, providing the essential tools for farmers to cultivate and harvest their crops. Here’s a comprehensive overview of this dynamic and promising market:

Current Market:

  • Size and Growth: The Indian tractor market is estimated to be valued at USD 2.24 billion in 2023, with a projected growth of 5.80% CAGR until 2028. This translates to a market size of USD 2.96 billion by 2028.
  • Production and Consumption: India is one of the largest tractor producers globally, with over 600,000 units sold annually. The vast majority of these tractors are consumed domestically, highlighting the strong local demand.
  • Dominant Players: Indian OEMs like Mahindra & Mahindra (M&M) with its Swaraj brand, TAFEInternational Tractors Ltd (Sonalika), and Escorts Limited hold a significant market share. International players like John Deere and CNH Industrial also have a presence.
  • Segments: The market is segmented based on power output (20-30 HP, 30-50 HP, etc.) and drive type (2-wheel drive, 4-wheel drive).

Future Outlook:

  • Promising Growth: Several factors contribute to the optimistic outlook for the market:
    • Rising rural incomes and government initiatives to boost agriculture.
    • Increasing focus on mechanization and farm efficiency.
    • Growing demand for specialized tractors for diverse agricultural needs.
    • Continued government support through subsidies and schemes like Kisan Credit Card.
  • Challenges: High dependence on monsoon rainfall, fragmented landholdings, and rising fuel costs pose challenges.


Here are top stocks from Tractor Manufactoring sector to consider investing:

1. Escorts

Escorts Ltd. is one of India’s leading engineering conglomerates engaged in the manufacturing of Agri-machinery, Construction & Material Handling Equipment and Railway Equipment.

2. VST Tillers Tractors

VST Tillers Tractors Ltd. was established in the year 1967 by the VST Group of companies, a well-known century-old business house in South India. The founder of the group was Sri V.S. Thiruvengadaswamy Mudaliar.
VST Tillers Tractors Ltd. was promoted by VST Motors as a joint venture since 1966 with Mitsubishi Heavy Industries Ltd, Japan. The company is now the largest manufacturer of Power Tillers in India.

3. Mahindra & Mahindra

Mahindra & Mahindra Ltd is one of the most diversified automobile company in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers.

It also has presence across financial services, auto components, hospitality, infrastructure, retail, logistics, steel trading and processing, IT businesses, agri, aerospace, consulting services, defence, energy and industrial equipment through its subsidiaries and group companies.

Before investing, consider these factors:

  • Your risk appetite: Can you handle potential volatility and fluctuations in your investment?
  • Investment horizon: Are you looking for short-term gains or long-term wealth creation?
  • Research individual companies: Evaluate their financial performance, growth prospects, and management quality.
  • Diversify your portfolio: Don’t put all your eggs in one basket. Invest in a mix of companies and sectors to mitigate risk.
  • Seek professional advice: Consult a financial advisor for personalized guidance based on your specific financial situation and goals.
Disclaimer: This stocks are recommended by my analysis, it’s your responsibility to analyse stocks before investing recommended by me or any one on Internet.