• Industry and competitive analysis :
Agriculture is a significant sector of the world economy and over one-third of the world’s population are working in this sector. In the present context the sector faces multiple challenges:
To produce more food and fibre to feed increasing population.
To contribute towards overall development of many agriculture-dependent developing countries.
To adapt to the climate change
To adopt more efficient and sustainable production methods.
Difference analysis: cage distance framework
The farm equipment manufacturers are playing a key role in improving productivity and are concentrating on integrating technologies to increase farm yield. We would focus on the tractor market in particular. The number of the new tractor sales is estimated to be above 2 million units. The market trend showed a slight decline but with high regional variation.
Indian Tractor Industry
The agricultural machinery market is going towards market consolidation as a result of intense and competitive landscape. We, at Mahindra, increasingly strive to provide high quality, tough and durable tractors to our consumers. We are the no. 1 tractor maker in the sub-continent for more than three decades. The major competitors in the segment are Deere & Company,Sonalika,TAFE and VST. The weak monsoon led to steep sales drop in the past fiscal year. The overall weak demand led to discounts and sales incentive and thereby hurt the profit margins by large. We expect more or less flat volumes for the current year amid prediction of bleak monsoon, slowdown in rural economy and lower minimum support price.
America’s Tractor Industry
In both USA and Canada, the “semi-professional segment”, below 40hp contributes for around 50% of the market volume respectively. The sales of the tractors have slumped due to the following reasons:
Reduction in the tax incentives
Oversupply of the market: Market clearance required for the high second-hand machinery stocks....
