Tractors in India

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As commercialization of agriculture grew in intensity in the mid-to-late 19th century the British
Raj and the local legislatures and provinces began investing in agricultural development through
support and establishment agricultural research farms and colleges and large scale irrigation
schemes yet the level of mechanization was low at the time of independence in 1947. The
socialist oriented five year plans of the 1950s and 60s aggressively promoted rural
mechanization via joint ventures and tie-ups between local industrialists and international tractor
manufacturers. Despite this aggressiveness the first three decades after independence local
production of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor production was nearly
140,000 units per year and by the late 1990s with production approaching 270,000 per year,
India over-took the United States as the world's largest producer of four-wheel tractors with over
16 national and 4 multi-national corporations producing tractors today. Despite these impressive
numbers FAO statistics estimate that of total agricultural area in India, less than 50% is under
mechanized land preparation, indicating large opportunities still exist for agricultural
mechanization.[1]

Contents
[hide]

• 1 1945 to 1960
• 2 1961 to 1970
• 3 1971 to 1980
• 4 1981 to 1990
• 5 1991 to 1997
• 6 1997 to 1999
• 7 1999 to Present
• 8 Tractor Manufacturers Association
• 9 Current Manufacturers of Tractors in India
o 9.1 Angad Tractors, SAS Motors Limited
o 9.2 Balwan Tractors, Force Motors Ltd
o 9.3 Captain Tractors Pvt. Ltd
o 9.4 Crossword Agro Industries
o 9.5 Eicher
o 9.6 Escorts (Escort, Powertrac and Farmtrac)
o 9.7 HMT Tractors
o 9.8 Indo Farm
o 9.9 John Deere
o 9.10 Mahindra Gujarat Tractor Limited
o 9.11 Mahindra & Mahindra
 o 9.12 MARS Farm Equipments Ltd.
o 9.13 New Holland
o 9.14 Preet Tractors
o 9.15 Punjab Tractors Ltd (Swaraj Tractors)
o 9.16 Same Deutz-Fahr Ltd.
o 9.17 Sonalika (International Tractors Ltd.)
o 9.18 Standard
o 9.19 TAFE
o 9.20 VST Tillers
• 10 Previous Indian Tractor Companies
o 10.1 Asian Tractors Ltd
o 10.2 Ford Tractors
o 10.3 Harsha Tractors
o 10.4 Haryana Tractors Ltd
o 10.5 Kirloskar Tractors
o 10.6 Pittie Tractors
o 10.7 United Auto Tractors Ltd.
• 11 See also

• 12 References

[edit] 1945 to 1960

War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid
1940's. In 1947 central and state tractor organizations 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.

[edit] 1961 to 1970

Local production began in 1961 with five manufacturers producing a total of 880 units per year.
By 1965 this had increased to over 5000 units per year and the total in use had risen to over
52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working
in the country.

[edit] 1971 to 1980

Six new manufacturers were established during this period although three companies (Kirloskar
Tractors, Harsha Tractors and Pittie Tractors) did not survive. 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 reaching 71,000 by 1980. Credit facilities for farmers
continued to improve and the tractor market expanded rapidly with the total in use passing the
half million mark by 1980.

[edit] 1981 to 1990

A further five manufacturers began production during this period but only one of these survived
in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985
and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net
importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa.

[edit] 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.

[edit] 1997 to 1999

Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo, already well
established in the motor industry, 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. The company is making a $US 75 million initial investment in a state of the art plant
at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. Larsen
and Toubro have established a joint venture with John Deere, USA for the manufacture of 35-
65 hp tractors at a plant in Pune, Maharashtra and Greeves Ltd will produce Same tractors under
similar arrangements with Same Deutz-Fahr of Italy. Looking to South American export markets
Mahindra and Mahindra are also developing a joint venture with Case for tractors in the 60-
200 hp range. Total annual production was forecast to reach 300,000 during the following year.

[edit] 1999 to Present

Facing market saturation in the traditional markets of the north west (Punjab, Haryana, eastern
Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000.
Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse
the decline, and began exploring the potential for overseas markets. Sales remained in a slump,
and added to the market saturation problems also came increased problems of "prestige" loan
defaults, where farmers who were not financially able took tractors in moves to increase their
families prestige. There are also reported increased misuse of these loans for buying either
lifestyle goods, or for social functions. Government and private banks have both tightened their
lending for this sector adding to the industry and farmers woes. By 2004 a slight up tick in sales
once again due to stronger and national and to some extent international markets. But by 2006
sales once again were down to 216,000 and now in 2007-08 have slid further to just over
200,000.

[edit] Tractor Manufacturers Association

The Tractor Manufacturers' Association of India (TMA) is housed under The Confederation of
Indian Industry (CII), New Delhi. Though not all manufacturers are members TMA is
recognized as the main trade group representing the agricultural tractor industry in India. Mallika
Srinivasan, Economic Times Businesswoman of the year 2006, and CEO of TAFE Limited, is
currently serving as president.

[edit] Current Manufacturers of Tractors in India

[edit] Angad Tractors, SAS Motors Limited

Main article: SAS Motors Limited

SAS Motors Limited, the manufacturer of 'Angad' Tractors, is a public limited company
incorporated in April 2003 with the mission of making low cost affordable farm mechanization
technology available to the Indian farmer. Its flagship product is ‘Angad’ 240 D tractor. The
company is engaged in sourcing, assembling, manufacturing, and marketing of ‘Angad’ brand
tractors and farm machineries. SAS Motors also provides a range of agricultural equipments – all
with innovative design and economical price.

Angad Tractors (SAS Motors Limited) main mission is to make low cost tractors, power tillers,
and other farm machineries designed on ‘appropriate technology ’ platform available to the
Indian farmers.

ANGAD Tractors ares built around the theme of power optimized, affordable and low
maintenance cost, value for money tractor suitable for multipurpose operations. Moreover, since
most tractors are purchased through bank loan, low cost advantage is reflected in loan servicing
(lower repayment installments) for the farmer and lower exposure for the banker. The product –
price combination is guaranteed to generate surplus income to farmer to not only defray the cost
of ownership but also create an additional perennial income /livelihood source. Currently, SAS
Motors Limited manufactures tractors ranging from 15-35 hp. [2]

[edit] Balwan Tractors, Force Motors Ltd

Main article: Force Motors Ltd

Formerly known as Bajaj Tempo Ltd. until 2005, Force Motors Ltd., makers of India's
ubiquitous 3-wheeler Tempos since 1957 in a collaboration with Vidal & Sohn Tempo Werke,
Germany. In 1999 began production of Ox and Ox 45 Brand Tractors both which incorporated
transmission technology from the German manufacturer ZF. Additional line Balwan was
introduced in 2004 and between the lines Force Motors offers a line of two-wheel and four-
wheel tractors in a horsepower range from 10 - 50 HP.[3]

[edit] Captain Tractors Pvt. Ltd

Founded in May 1994 and located in Rajkot, India, Captain Tractors manufactures mini-tractors
under the Captain brand.[4]

[edit] Crossword Agro Industries

Located in Rajkot, India, Crossword manufactures small tractors under the Nissan, Atmak and
Captain brand names.[5]

[edit] Eicher

Main article: Eicher Motors

In 1949, Eicher GoodEarth, was set up in India with technical collaboration with Gebr. Eicher a
of Germany, imported and sold about 1500 tractors in India. In April 24, 1959 Eicher came out
with the first locally assembled tractor from its Faridabad factory and in a period from 1965-
1974 became the first fully manufactured (100% indigenization) tractor in India. In December,
1987 Eicher Tractors went public and in June, 2005 Eicher Motors Limited sold Eicher Tractors
& Engines to a subsidiary of TAFE called TAFE Motors and Tractors Limited.

Eicher also produced tractors under the Euro Power and Eicher Valtra brands under license
from Valtra, an AGCO brand.[6]

[edit] Escorts (Escort, Powertrac and Farmtrac)

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 reaching 71,000 by 1980. Ford (Ford - New
Holland) was sold in 1992. Ford Motor Company proper quit the tractors business, but the name
was allowed to continue as per agreement until 2000, when Escorts relabeled its Ford models
under the Escort brand. Escort manufactures produces tractors in the 27-75 HP range and has
already sold over 6 lac tractors. Its tractors are marketed under three brand names, Escort,
Powertrac and Farmtrac.

[edit] HMT Tractors

Main article: Hindustan Machine Tools

HMT is a large public sector unit and began manufacturing Agricultural Tractors in 1972 under
the HMT brand name with technology acquired from Zetor of the Czech Republic. It
manufactures its tractors in Pinjore, Mohali in a large factory that also manufactures machine-
tools, and Hyderabad It has a capacity of 20,000 tractors per annum. In the Machine-tool
company is a large foundry. It produces tractors in a range from 25 HP to 75 HP. For a short
time, HMT exported tractors to the USA under the Zebra brand, which were marketed by Zetor
distributors and dealers there. The company is controlled by the Ministry of Heavy industry that
provides, on a monthly basis to the public its financial performance.

[edit] Indo Farm

Founded in Baddi, Himachal Pradesh, India in 1999, Indo Farms builds tractors in the 30-50 hp
ranges.[7]

[edit] John Deere

Main article: Deere & Company

In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in
Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private
Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under
the John Deere name for worldwide sales.[8][9]

In 2005, Deere & Company acquired nearly all the remaining shares in this joint venture. The
new enterprise, is known as John Deere Equipment Private Limited. The factory currently
produces tractors in of 35, 40, 42, 47, 50, 55 and 70 HP capacities for domestic markets and for
export to the USA, Mexico, Turkey, North and South Africa, and South East Asia. Pune factory
started to produce new 55 to 75 Hp 5003 series tractors for European market in 2008.

John Deere India Private Limited is a subsidiary of Deere & Company, USA in India. Its factory,
located near Pune, manufactures 5000 Series agricultural tractors. The Indian operations of
Deere & Company include a technology center located at Magarpatta City Pune and John Deere
Water Vadodara. The technology center provides services in the areas of Information
technology, engineering, supply management, embedded systems and technical authoring for
company’s operations world wide. John Deere Water, formed by the acquisitions of Plastro
Irrigation Systems, T-Systems International, and Roberts Irrigation Products, is one of the
leading irrigation companies in the world today.

[edit] Mahindra Gujarat Tractor Limited

The company was originally incorporated in the state of Gujarat in 1963 with technical
collaboration with Motokov-Praha of Czechoslovakia as Gujarat Tractor Corporate Ltd. It was
taken over by Mahindra & Mahindra Limited on 17 December 1999 (holds 60% equity) and re-
christened Mahindra Gujarat Tractor Ltd as part of Mahindra Tractors. The company is engaged
in manufacturing of tractors in a range of 30-45 hp which are marketed under Shaktimaan
brand.[10] They were previously marketed under the Mahindra Gujarat name, and before that
the Hindustan name.

[edit] Mahindra & Mahindra

Main article: Mahindra Tractors

M&M's Farm Equipment Sector origins lie in a joint venture in 1963 between the Company,
International Harvester Inc., and Voltas Limited, and was named International Tractor Company
of India (ITCI). In 1977, ITCI merged with M&M and became its Tractor Division. After
M&M's organizational restructuring in 1994, this division was called the Farm Equipment
Sector. The Farm Equipment Sector has also ventured into manufacturing of Industrial Engines.
M&M Industrial engines are used for various applications like generator sets, industrial,
construction, marine, compressors, etc. These engines are manufactured at the Company's engine
assembly plants at Kandivli and Nagpur. M&M has two main tractor manufacturing plants
located at Mumbai and Nagpur in Maharashtra. Apart from these two main manufacturing units,
the Farm Equipment Sector has satellite plants located at Rudrapur in Uttarachal and Jaipur in
Rajasthan. The Farm Equipment Sector as reported by the Company has a dealer network of over
450 dealers. This dealer network is managed by 28 area offices, situated in all the major cities
and covering all the principal states and M&M tractors has sold more than 13,00,000 tractors
since its inception. M&M's Farm Equipment Sector is perhaps the largest exporter of Indian
tractors to the USA and the west. And in a reversal to earlier trends of Indian tractor
manufactures with joint ventures with western tractor companies, M&M, in 2004 announced that
they had bought majority stake (80%) in Jiangling Tractor Company, and renamed it Mahindra
Jiangling Motor Co Group (JMCG). This is the first instance of Indian tractor industries
participating in India's reverse FDI. The plant in China reportedly has a production capacity of
12,000 tractors annually.

In March 2007, M&M bought a controlling 43% stake in the Mohali-based tractor firm Punjab
Tractors (Swaraj) that will reportedly increase M&M's share in the domestic farm equipment
market from just over 30% to 40%. The 43% stake includes 29% owned by private equity firm
Actis Capital and 14.2% by the Delhi-based Burman family. In July 2007, Mahindra upped its
stake to 64.6%.[11]

[edit] MARS Farm Equipments Ltd.

Originally established in 1976, the MARS Group is engaged in manufacturing/marketing of

dump trucks, loaders, foggers, and agricultural tractors and attachments. Based in Lucknow,
U.P., it began manufacturing two mini-tractor models under the Marshal name in 2005, Captain
DI 2600 of 25 HP and Trishul MT DI 625 10 HP. [12]

[edit] New Holland

Main article: New Holland Ag

New Holland Ag's entry into India was facilitated by FIAT's acquisition of Ford-New Holland in
1991. By 1998 New Holland Ag. (India) completed the construction of a new plant in Noida,
near New Delhi, with a capacity of 5000 tractors in the 35 - 75 hp range. In 1999, New Holland
Ag.'s parent company FIAT bought 70% of holdings of Case Corporation and created Case New
Holland Global (CNH one of the top three tractor/agricultural/construction machinery
manufacturers in the world), the new holding company New Holland Ag. (India). In 2000, the
capacity of the Noida plant rose to 12,000 tractors per year and in 2007 the company
manufactured 24,000 tractors for the domestic and export markets.New Holland India exports
fully-built tractors to 51 countries in Africa, Australia, South-East Asia, West Asia, North
America and Latin America.The India plant of New Holland was originally built in 1998 to cater
only to India domestic market. However due to slow down of economy by year 2001-2002 and
slump in domestic demand, it became a challenge to utilize the installed capacity of the
factory.Hence the company started looking its market beyond India borders. Its then CEO Mario
Gasparri guided the vision and handed over the task of overseas business to its dynamic manager
Bhanu Sharma. The efforts paid off well. Bhanu Sharma in capacity of Head-International
Business Operations, took op the export volumes from the level of almost nil in 2003 to 8000
units in year 2007. The export business last year in 2007 contributed over 50% of the company
business of total USD 250 millions.This also made New Holland the second largest tractor
exporter from India after John Deer. In year 2007, India exported around 32,000 tractors of
which 25% share was of New Holland.

[edit] Preet Tractors

Preet Agro began manufacturing tractors in 2002 in Punjab, India. They currently manufacture
in the 35-70 hp range.[13]

[edit] Punjab Tractors Ltd (Swaraj Tractors)

See also: Swaraj Mazda

See also: Mahindra Tractors

In 1965, Government of India research institute Central Mechanical Engineering Research

Institute, Durgapur, WB initiated design and development of Swaraj Tractor based on
indigenous know-how. In 1970, Punjab Government acquired the Swaraj tractor's design and
established Punjab Tractors Limited (PTL). It was India's first large-scale totally indigenous
project. The company exports Tractors to various countries including USA. It manufactures nine
models of tractor and several models of combine harvesters. The manufacturing units are located
at Mohali District, Asron Village of Nawanshahar District and Nabha of Patiala District, Punjab.
Today Swaraj tractor is the second most selling brand of tractors in India after Mahindra.More
than 800000 lacs tractor sold.

The popular models sold under SWARAJ brand are:

SWARAJ 744, SWARAJ 735, SWARAJ 855, SWARAJ 978, SWARAJ 834, SWARAJ 939,
SWARAJ 733, SWARAJ 724, SWARAJ 722

Swaraj also manufactures Forklifts and Combines, which are assembled in their Mohali Plant.

Actis Capital, a private equity firm acquired 29% of Punjab Tractors in mid-2003 from the
Punjab Government. In March 2007, and currently subject to the receipt of requisite approvals,
M&M bought a controlling 43% stake in Punjab Tractors Ltd. that will reportedly increase
M&M's share in the domestic tractor market from just over 30% to nearly 40%. The 43% stake
in Punjab Tractors includes the 29% owned by Actis Capital and 14.2% by the Delhi-based
Burman family. In July 2007, Mahindra upped its share in Punjab to 64.6%.[11]

[edit] Same Deutz-Fahr Ltd.

Main article: Same Deutz-Fahr

SAME Tractors is an USD 4 billion company for past 7 Decades of Rich Experience in
Agriculture Segment. It was found by Francesco Cazzani along with his brother way back 1927.
Greaves Ltd, joined in collaboration with SAME for manufacturing of tractors in 1996 under
the SAME-Greaves brand. By 2000, Greaves sold its shares to SAME and formed 50:50 Joint
Venture as SAME Greaves Tractors Ltd.
By 2002, Greaves Exited from SAME, SAME Greaves has become a wholly owned subsidiary
of SAME, Italy. The company has been renamed as SAME DEUTZ Fahr Group India, Ranipet,
Tamil Nadu, India.

[edit] Sonalika (International Tractors Ltd.)

Main article: Sonalika Tractors

International Tractors Limited was incorporated on October 17, 1995 and began
manufacturing tractors designed by Central Mechanical Engineering Research Institute
(CMERI). ITL currently is manufacturing Sonalika tractors between 30 HP to 90 HP, and the
CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agricultural of
France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault
Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has a
strong presence in India market producing its Crop Tiger range of Combine Harvesters in a plant
in Faridabad (near New Delhi) since 1992. CLASS has opened a new plant in Punjab at Morinda
in 2006.

[edit] Standard

Standard Combine began building tractors in Barnala, Punjab, India. In Standard Tractors,
tractors are being manufactured in the range of 35, 45, 50, 60, and 75 HP with respective model
names: Standard 335, Standard 345, Standard 450, Standard 460, and Standard 475. Engines for
all these tractor models, except the last one, are manufactured within the plant as ‘Standard
Engines’, in specific names – SE 335, SE 345, SE 450 and SE 460, respectively. All the above-
mentioned models of Standard Engines have shown compliance to the TREM-III emission
norms, as have been verified by the ARAI. However, two new variants of tractor of 35 hp
(Standard 335-I) and 45 hp (Standard 345-I), equipped with famous Perkins engines (assembled
within the Standard Tractors plant), and two completely new models of tractor of 30 hp
(Standard 330) and 40 hp (Standard 340) are on the verge to be launched. Besides these, three 3-
wheelers (two passenger-carriers and one cargo), one 4-wheeler (cargo), a crane, an electric 3-
wheeled mini-car, and two 2-wheelers (scooters) are either in the process of development or on
the verge of launch from the Standard Tractor Division.[14]

[edit] TAFE

Main article: TAFE Tractors

Tractors and Farm Equipment Limited (TAFE) was established in 1961 to manufacture and
market Massey Ferguson tractors and related farm equipment in India. AGCO, the owner of
Massey Ferguson, now owns 24% of TAFE. Tractors are built and sold in India under both the
TAFE and Massey Ferguson brands, and exported under both brands as well. In 2005, TAFE
bought the Eicher Motors tractor and engine division.[15][16]

[edit] VST Tillers

VST Tillers was set up in 1965 in Bangalore, India. In collaboration with Mitsubishi Agricultural
Machinery of Japan, they manufacture 18HP tractors under various brands, including
Mitsubishi-Shakti', Shakti, Eurotrac-VST and Euro-Trac. They have been exported to Asia,
the Middle East, Europe and the USA.[17] in odisa it was introduced in the year 1987 with the
help of m/s sahoo agrochem Cuttack 753009,

[edit] Previous Indian Tractor Companies

Tractor companies that did not survive and were not acquired by other companies are:

[edit] Asian Tractors Ltd

Began building tractors in 1989 from their own designs.[18]

[edit] Ford Tractors

See also: Fordson tractor

Main article: New Holland Ag

Ford (formerly Ford Tractor Division) began producing Ford Tractors in India in 1972 with a tie
up with Escorts. In 1986 Ford acquired New Holland and tractor operations was transferred to
Ford-New Holland and made into an independent corporation. In 1991, Fiat began an arranged
purchase of Ford-New Holland that was completed in 1993, ending Ford Motor Company's long
history of tractor production. The deal required that New Holland/FIAT stop using the Ford
name. New Holland India Pvt began production of tractors in India in 1998.[19]

[edit] Harsha Tractors

In 1975, Harsha Tractors Ltd began manufacturing tractors in conjunction with Motoimport of
Russia.[18] Tractor production never amounted to much, and has since ceased.

[edit] Haryana Tractors Ltd

As a part of Pratap Steel Rolling Mills Ltd., Haryana began building tractors from their own
designs in 1983.[18]

[edit] Kirloskar Tractors

See also: Kirloskar Group

Founded in cooperation with Deutz-Fahr of Germany in 1974.[18] It has since ceased to

manufacture tractors. However, the company continues to manufacture engines under license
from Deutz.

[edit] Pittie Tractors

Pittie Tractors was set-up by a young and dynamic engineer - Shrikant Pittie and started out as
Pittie Tools. The Pittie family are prominent industrialists in Pune and the family set-up the first
private industry in Pune - The Raja Bahadur Motilal Poona Mills Ltd. in 1893. Pittie Tractors
indigenously developed and manufactured tractors and was well set to capture a large share of
the market in India. However, due to an unfortunate labor strike at one of its critical vendors,
followed by a similar strike at its own plant, the company lost nearly a year of production. As a
result, the company fell into financial difficulty and ultimately had to wind-up operations.

[edit] United Auto Tractors Ltd.

Began in 1986 in conjunction with Uzina Tractorul of Romania.[18]