Tractors in India are a major industry and significant contributor to its agriculture output gains. In 1947, as India gained independence from the British Empire, the level of agriculture mechanisation was low. The socialist oriented five-year plans of the 1950s and 1960s aggressively promoted rural mechanisation via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite these efforts, the first three decades after independence local production of 4-wheel tractors grew slowly. By the late 1980s tractor production was nearly 140,000 units per year, and a prevalence rate of less than 2 per 1,000 farmers. After economic reforms of 1991, the pace of change increased and by late 1990s with production approached 270,000 per year. In early 2000s, India overtook the United States as the world's largest producer of four-wheel tractors. FAO estimated, in 1999, that of total agricultural area in India, less than 50% is under mechanised land preparation, indicating large opportunities still exist for agricultural mechanisation. In 2013, India produced 619,000 tractors accounting for 29% of world's output, as the world's largest producer and market for tractors. India currently has 16 domestic and 4 multinational corporations manufacturing tractors.
History
1945 to 1960 War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid-1940s. In 1947 central and state tractor organisations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.In this period Massey Ferguson entered India With Massey Ferguson 35x and 135
1960–1970 By 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country.
1971 to 1980 By late 60's the government of India initiated the Green Revolution in India program and the need for mechanisation created more demands for farm tractors.To meet the initial demand the Government allowed lot of imports mostly from USSR and its Eastern Bloc neighbours. In addition six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. HMT, a large public sector unit, began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology acquired from Zetor of the Czech Republic (and in year 2016 this company was shut down by the government of India). Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975–76
1981 to 1990 A further five manufacturers(Auto Tractors, Haryana Tractors, United Auto Tractors, Asian Tractors, and VST Tillers) began production during this period but only VST has survived in the increasingly competitive marketplace. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Than India – a net importer up to the mid-seventies – became an exporter in the 1980s mainly to countries in Africa.
1991 to 1997 Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997 annual production exceeded 255,000 units and the national tractor population had passed the two million mark. India now emerged as one of the world leaders in wheeled tractor production.
1997 to 1999
Five new manufacturers started production in this period. In 1996 Sonalika Tractors started its first tractor manufacturing plant in Hosiarpur, then in 1998 Bajaj Tempo, later renamed Force Motors, began tractor production in Pune. In April of the same year New Holland Tractor (India) Ltd launched production of 70 hp tractors with matching equipment by investing $US 75 million in a state-of-the-art plant at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Also during this time, Larsen and Toubro established a joint venture with John Deere of the United States, for the manufacture of 35–65 hp tractors at a plant in Pune, Maharashtra. And Greeves Ltd began producing tractors under similar arrangements with Deutz-Fahr of Italy. Captain Tractors has rolled out first indigenous Mini Tractor of 9.5 hp for small and marginal farmers. CASE now Case IH looking to develop a joint venture in India went into discussions with various Indian companies and in 1999 settled with New Holland Pvt Ltd. India for manufacturing CASE brand tractors and harvesting equipment at New Holland's facility.
1999 to present Facing market saturation in the traditional markets of the north west (Punjab, Haryana, Western Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000. Manufacturers expanded into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets. In 2013, India produced 619,000 tractors accounting for 29% of world's output. It is the world's largest producer and market for tractors. India currently has 16 domestic and 4 multinational corporations manufacturing tractors. In 2014 Zetor come back in India and linked with the local tractor manufacture companies to supply 40 to 75 hp tractors on zetor brand name to other countries.
Characteristics, prevalence and market share
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