Mahindra sees 12 per cent growth in tractor market in FY14

NDTV Profit Desk

11 Dec 2013, 04:26 PM IST

Auto major Mahindra & Mahindra has said it expects the tractor segment in India to grow by around 12 per cent this fiscal year (FY14) on the back of a timely monsoon.

The company, which markets tractors through its Farm Equipment Sector (FES) and sells over 100 models and variants of tractors put together ranging between 15 HP to 50 HP, aims to grow more than the industry in 2013-14.

"At the beginning of the year, we expected the market to grow by around 6 per cent. But with timely monsoon and other positive factors, we now expect the market to grow by around 12 per cent in the current fiscal," Sanjeev Goyle, marketing chief at M&M FES, told PTI on Wednesday.

Asked about the growth targets set by the company for the fiscal year, Mr Goyle said, "We are targeting to grow better than the industry during the current fiscal."

Timely monsoon this year has helped in creating a positive atmosphere in the tractor market helping the industry grow, he said.

The tractor market in the country stood at 5.25 lakh units in FY13 and is expected to cross 6 lakh units in the current fiscal year. Mahindra has a market share of over 40 per cent in the segment.

The company's tractor sales grew by 26 per cent in November, he said.

Earlier this year, the company commissioned a new tractor plant in Andhra Pradesh, which has has been set up with an investment of Rs 300 crore and an installed capacity of one lakh tractors per annum.

At present, M&M has tractor manufacturing plants in Mumbai, Nagpur, Rudrapur, Jaipur, Mohali and Rajkot. It also has two plants each in the US and China, and one in Australia.