Mahindra & Mahindra Forecasts Low Single-Digit Growth for Tractor Industry

Mahindra & Mahindra Ltd, a prominent player in the tractor industry, expects a modest increase in the growth of farm mechanization sector in the fiscal year 2024.

With the forthcoming elections encouraging government spending on the sector and a promising monsoon season this year, the company envisions the tractor industry expansion in low single digits.

In order to take advantage of the expected growth and increase its market share, Mahindra & Mahindra has devised plans to introduce lightweight tractors. A new product under the Swaraj brand will be launched in June, demonstrating the company's dedication to innovation and expanding its range of offerings.

Also Read:- Mahindra & Mahindra Set to Launch New Lightweight Swaraj Tractors Platform

Rajesh Jejurikar, the CEO of Mahindra & Mahindra's Auto and Farm Sector, expressed positive sentiments regarding the current state of the tractor market. He emphasized that the industry has seen improvements in tractor terms and has benefitted from favorable conditions such as sufficient reservoir levels and a strong rabi crop. Jejurikar also highlighted the successful performance of Yuvo Tech, which has played a substantial role in increasing market share. Furthermore, the company's strategic enhancements to distribution channels and operational efficiency have contributed to the growth of the Swaraj brand's market share. Encouraged by these accomplishments, Mahindra & Mahindra plans to expand into untapped product segments. An extensive upgrade of the Swaraj brand is on the horizon, accompanied by robust marketing campaigns in August and September.

Also Read:- Mahindra & Mahindra Soon to Launch Mahindra Oja Tractors Globally

Moreover, the company achieved an impressive market share of 40.7 percent for the quarter and maintained a consistent market share of 41.2 percent throughout FY23.

With the tractor industry preparing for a potential upswing propelled by increased government spending in light of the upcoming elections and favorable agricultural conditions, Mahindra & Mahindra is well-positioned to capitalize on the market's potential. Drawing upon its extensive market knowledge, innovative product offerings, and strong brand reputation, the company is poised to make significant advancements within the sector.

-BusinessLine 

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