TRACTOR INDUSTRY

INTRODUCTION

Background
India is mainly an agricultural country. Agriculture in India accounts for approximately 15.7 percent of
India’s GDP in 2009 and employs about 52 percent of the population. The agri-biotech sector in India has
been growing at a whopping 30 per cent since the last five years, and it is likely to sustain the growth in
the future as well. Agricultural biotech in India has immense potential and India can become a major
grower of transgenic rice and several genetically engineered vegetables by 2010.

India has become the world's largest producer across a range of commodities due to its favorable agro-
climatic conditions and rich natural resource base. India is the largest producer of coconuts, mangoes,
bananas, milk and dairy products, cashew nuts, pulses, ginger, turmeric and black pepper. It is also the
second largest producer of rice, wheat, sugar, cotton, fruits and vegetables.

According to the Centre for Monitoring Indian Economy (CMIE), crop production is expected to rise by
1.7 per cent during FY 10 and foodgrain production is expected to increase by 1.1 per cent and wheat
production is projected to remain at the same level of 80 million tonnes as estimated for FY 09 while rice
production is projected to increase by 1.1 per cent to 98.8 million tonnes. Production of coarse cereals and
pulses is also expected to rise in FY 10.

Government Initiatives for Agriculture Sector

In Budget 2010-11, the Finance Minister, Mr. Pranab Mukherjee has made the following announcements
for the agriculture sector:
 Provision of US$ 88.02 million to increase the green revolution to the eastern region of the
country comprising Bihar, Chattisgarh, Jharkhand, Eastern Uttar Pradesh, West Bengal and
Orissa
 Provision of US$ 66.02 million to organize 60,000 pulses and oil-seed villages in rain-fed areas
in 2010-11 and to provide an integrated intervention for water harvesting, watershed management
and soil health to improve productivity of the dry land farming areas
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Banks have been consistently meeting the targets set for agricultural credit flow in the past few
years. For the year 2010-11 the agricultural credit flow target has been set at US$ 82.53 billion
The one-time bank loan waiver of nearly US$ 14.6 billion to cover an estimated 40 million
farmers was one of the major highlights of the 2008-09 Budget. Under the Agricultural Debt
Waiver and Debt Relief Scheme (2008), farmers having more than two hectares of land were
given time up to June 30, 2009 to pay 75 per cent of their over dues. In the 2009-10 Budget, the
time frame was extended by six months up to December 31, 2009. This has been further extended
till June 30, 2010.
In addition to the 10 mega food park projects already being set up, the government has decided to
set up five more
The government has already approved 60 Agriculture Export Zones (AEZs)
Services related to agro and allied sectors have been thrown open to 100 per cent foreign direct
investment (FDI) through the automatic route
The Cabinet has approved 2 per cent interest subsidy on bank loans taken by farmers. The
subsidy would cost the exchequer about US$ 826 million in the fiscal year 2009-10

Agricultural Equipments
The various processes in Agriculture involve the use of multiple equipments at each stage:
Overview of Tractor Industry in India

Tractor industry plays an important part as agriculture sector has a major contribution to India’s GDP.
Tractors are part of agricultural machinery industry. Tractors came to India through imports and later on
were indigenously manufactured with the help of foreign collaborations. The manufacturing process
started in 1961-62. Indian tractor industry is relatively young but now has become the largest market
worldwide.

Higher productivity and greater output are the two major contributions in farm mechanization. Tractors
form an integral part of farm mechanization and have a crucial role to play in increasing agricultural
productivity. Tractor is a highly versatile piece of machinery having a multitude of uses, used in
agriculture both for land reclamation and for carrying out various crop cultivation and also employed for
carrying out various operations connected with raising the crops by attaching suitable implements and to
provide the necessary energy for performing various crop production operations involved in the
production of agricultural crops. Tractors are capital intensive, labour displaying used as a mode of
transport, in electricity generation, in construction industry and for haulage operation. It has now become
an integral part of farm structure .The application of tractor for agricultural activities which swept India
during the last twenty years have erased the problem of farmers. Farm mechanization program in India
aims to integrate the use of available human and animal farm power with mechanical sources of power for
increasing the productivity.

Indian tractor industry, comparatively young by world standards have expanded at a spectacular pace
during last four decades. Consequently it now occupies a place of ride in India's automobile industry.
U.S.A., U.S.S.R. and only a few Western European countries exceed the current production of tractors in
India, but in terms of growth India's growth is unmatched even with countries of long history of tractor
manufacturing.

The spectacular achievement reflects the maturity and dynamism of tractor manufacturers and also the
policies adopted by the government to enable it to effectively meet the demand. The tractor industry in
India has made a significant progress in terms of production and capacity as well as indigenisation of
technology. It is a typical sector where both imported technology and indigenous developed technology
have developed towards meeting the overall national requirements. The global spotlight on tractors
manufacturers certainly in terms of volume seems to be swinging away from the USA, UK and Western
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and Eastern Europe towards India where growth in the number of producers and the total volume in
recent years have been impressive. In India tractor industry has played a vital role in the development.

India's gross cropped area is next only to United States of America and Russia and long with fragmented
land holdings has helped India to become the largest tractor market in the world. But it drops to eight
position in terms of total tractor in use in the country when compared to international figures, only 3%
of total tractors used all over the world . It is to be noted that while the overall automobile industry is
facing recession the tractor industry is growing at 9%.About 20% of world tractor production is carried
out in our country only. The arable land in India is high as 12% of the total arable land in the world.
Tractor market in India is about Rs 6000 crore. On an average around 400000 tractors are produced and
their sale is 260000.Uttar Pradesh is the largest tractor market in our country. One out of every four
tractor is being Purchased here. Indian tractor market has to be viewed considering its position in the
world

HISTORY
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.

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.

1971 to 1980

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. 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.

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.
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 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.

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 family’s prestige. There
are also reported increased misuses 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 uptick 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

Tractor Manufacturers Association

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 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.

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.

Current Manufacturers of Tractors in India

Angad Tractors, SAS Motors Limited

SAS Motors Limited, the manufacturer of 'Angad' Tractors, is a public limited company
incorporated in April 2003. 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.

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.

Currently, SAS Motors Limited manufactures tractors ranging from 15-35 hp. [2]

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] In india BALWAN 600 launched
shortly.It have 60 Hp engine . Balwan Tractores are one of the good tractor in india for
agricultural perpose,They are having Benz engine,

Captain Tractors Pvt. Ltd

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

Crossword Agro Industries

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

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. The Escorts Group, is among India's leading engineering
conglomerates operating in the high growth sectors of agri-machinery, construction & material
handling equipment, railway equipment and auto components.

HMT Tractors
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, Panchkula 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. HMT has also
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 to
the public its financial performance.

Indo Farm

www.indofarm.in Founded in Baddi, Himachal Pradesh, India in 1999, Indo Farms builds
tractors in the 33 to 90 hp ranges. company is also manufacturing 9 to 18 ton cranes and 15 to 50
kv silent gen sets. ursus poland is its technical partners. indo farm tractors are becoming famous
in indian tractor customers because of their better working performence, quality and resaonable
prices. company is exporting their products to many developed countries like: new zealand, uk,
poland, germany etc. tractor manufacturing is fully computerised and marketing team is very
dedicated and experienced. [7]
John Deere

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, 38, 40, 42,45, 50, 55, 65, 75 and 89 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 at Sanaswadi, 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.

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.

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]

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]

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 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 Deere. In year 2007, India exported around 32,000 tractors of which 25% share
was of New Holland.

Preet Tractors

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

Punjab Tractors Ltd (Swaraj Tractors) In 1965, Government of India research institute Central
MechanicalEngineering 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. 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%.

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 1999 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.

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. Sonalika is now having collabration with YANMAR(Japan), and raised its production to
200 tractors per day.

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]

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]

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,

Previous Indian Tractor Companies

Auto Tractors Ltd., Pratapgarh

Had manufacturing plant at Pratapgarh (U.P.) and were making tractors with Leyland engines.
Asian Tractors Ltd

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

Ford Tractors

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]

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.] Haryana Tractors
Ltd

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

Kirloskar Tractors

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.

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.

United Auto Tractors Ltd.

Began in 1986 in conjunction with Uzina Tractorul of Romania.
FOREIGN COLLABORATION

Tractor industry along with others benefited from this policy which allowed free inflow of foreign
technology .The manufacture of tractors started in India mainly with the help of foreign collaboration
secured from internationally reputed companies from the USA, UK, USSR, WESTGERMANY,
POLAND ,CZECH SLOVAKIA . Most of the models which were taken up for manufacture in India were
developed overseas. Soon after the decision for the manufacture of tractors was made during second plan,
government approved number of foreign collaboration agreements.

The establishment and present status of tractor industry owes a great deal to the support received by the
Indian entrepreneurs from foreign collaboration during the initial phase of manufacture

Manufacturer
Collaborator
Year
Eicher Tractors Ltd
Gebr,Eicher Tractor,West Germany
1961
Gujrat Tractors Ltd
Motokov-Praha,Czechoslovakia
1963
TAFE
Messey ferguson,UK
1961
Escorts Ltd
Moloimport Arazawa Zaklady Mechaniczne,
Ursus Poland
1964
Mahindra & Mahindra International harvestor,UK
1965
Escorts Tractors ltd
Ford UK
1971
Hindustan Machine
Tools
Motokov-Praha,Czechoslovakia
1971
Kirloskar Tractors ltd
Klochner-Humboldt Deutz.Germany
1974
PanjabTractors ltd
CEMRI.INDIA
1974
Pittle Tractor Ltd
Own Know how
1974
Harsha Tractors ltd
Moto Import,Rassia
1975
Auto tractor Ltd
British Leyland,UK
1981
Pratap Steel Rolling
Mill
Own Know how
1983
VST Tillers
Mitsubishi,Japan
1983
United Auto tractor Ltd Jznina tractorul,Romania
1986
Asian tractor Ltd
Own Know how
1989
Bajaj Tempo ltd
Own Know how
1987
International Tractors
Own Know how
1998
Larson & Tubro Ltd
John Deere US
1999
New Halland Tractors
New Halland Tractors,Italy
1999
Greaves Ltd
Same Deutz Fhar, italy
1999