M&M aims to grow its market share to 40% in the light weight tractor market in 3 years

The new range of tractors will cater to the fast-growing horticulture space and paddy market to bring in incremental volumes.

By Ketan Thakkar

15 Aug 2023

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Mahindra & Mahindra, the country’s largest tractor maker is planning to grow its market share by 10 percentage points or 1000 basis points in the 1.25 lakh unit lightweight tractor market from 20 to 40 horsepower to 40% in the coming three years with the launch of a new range of Oja tractors.

The company currently has a market share of 30% in the 20-40 horsepower market catering to the horticulture segment and paddy sowing market.

Hemant Sikka, President of Farm Equipment Business of Mahindra & Mahindra says “The new range of Oja tractors will participate in the fast-growing segment of horticulture and we also feel that there is a significant opportunity to participate in paddy farming space, which will prefer a 4wd drive version and all the models will be with 100% connectivity.”

Mahindra along with the Swaraj brand has a market share of 41.5% of the 9.5 lakh unit tractor market in the country. While the total tractor market is growing at a compounded annual growth rate of 7%, however the horticulture space, where the Oja range of tractors will be positioned, is growing at a strong double-digit.

Under the Oja brand – Mahindra has four platforms catering to the varying needs of the market. On Tuesday, the company launched 7 models on three new platforms – sub-compact, compact and small utility in the 20 -40 horsepower range and the company will launch the large utility platform in a year's time catering to the (40 to 70 horsepower) segment.

The Oja platform has been developed with an investment of Rs 1,200 crore which will have four different platforms powered by 4 engines and 4 transmissions, but the company is also considering a zero-emission powertrain.

“We are thinking of electrifying this platform – but the timeline is not yet defined and the segment will take time to see EV adoption,” added Sikka.

Apart from expanding its product portfolio, the company will be expanding its footprint from 1,100 to 1,300 points in the next two years.