John Deere India, which has been struggling for two decades in the fiercely competitative tractor market in India, plans to finally break into double digit market share in Asia’s third biggest economy.
On its 20th year in India, the fifth largest tractor maker, launched its smallest four-wheel-drive 3028EN tractor on Tuesday to fuel growth. It will take on dominant market leader Mahindra’s Jivo tractor launched in India last year.
The all new 28 hp John Deere tractor is targeted at small farmlands in the country.
The new tractor is equipped with advanced technology and features suited for orchard and paddy farming.
The Pune-headquartered brand neither revealed investment details for its development nor its pricing details. The new tractor would be introduced in the Indian market within three weeks.
“We will introduce our smallest 28 hp 3028EN tractor in the Indian market within three weeks,” Satish Nadiger, managing director and CEO at John Deere India told Financial Chronicle.
He said its price would be revealed at the launch.
John Deere, which sold 70,000 tractors in India last year and exported 24,000 units, at present, has a market share of about 9 per cent.
The tractor industry in India, dominated by market leader Mahindra and Mahindra (and Swaraj), with a 45 per cent market share, TAFE (and Eicher), controlling 20 per cent, followed by Sonalika and Escorts sold 7.70 lakh tractors last fiscal, is clocking growth of 17 per cent year-on-year.
John Deere grew 34 per cent on a lower base but gained 3.5 per cent market share in the last three-four years. “With our new tractor and growth plans, we are targeting to break into double digit growth in India,” Nadiger said.
He said the company is now aggressively focusing on expansion with new products, especially Uttar Pradesh, Madhya Pradesh, Bihar, Telengana and other states for growth.
It has two factories in Pune and Dewas in Madhya Pradesh to manufacture a range of tractors between 28HP to 120 HP tractors. While Pune factory has an installed capacity to produce 72,000 tractors annually, Dewas facility can make 60,000 units.
The company rolled out its 100,000th tractor on Tuesday.
The tractor industry in India would make the transition to Bharat Stage IV equivalent emission norm in April 2021.
Officials said although the transition to BS-IV would not significantly disrupt tractor demand in the country, even though the price hike is going to be significant.
This is because the change in norms will be for tractors that are powered by more than 50HP engines.
More than 90 per cent of tractors sold in India have power less than 50HP engine.