Swaraj launches 'Target' range of light tractors aimed at the growing horticulture segment
The Swaraj Target 630 model will first be available through its extensive dealer network in Maharashtra and Karnataka, starting from Rs 5.35 lakh ex-showroom.
In a bid to participate in the fastest-growing horticulture space, Swaraj Tractors, the country's second-largest tractor maker which is a part of the Mahindra Group, has launched a new range of 20-30 horsepower under the brand Target.
The introduction of Target is part of a major product revamp at Swaraj, which is likely to witness five new platforms catering to multiple categories including electric and autonomous tractors. Apart from expanding the product range, the company is also in the process of setting up its third manufacturing facility, which will go on stream in the next couple of quarters.
Hemant Sikka, president of Farm Equipment Business at Mahindra & Mahindra says Swaraj has been the fastest growing brand in the last decade and the plan to introduce this new range of tractors is to sustain the outperformance and grow the share.
"It is a white space for us, so this new range of tractors will bring in incremental sales. While India is a large cereal-consuming nation, the horticulture space has been significantly outpacing the market. With the crop area of just 18%, horticulture accounts for 30% of agri-GDP, it is a very important segment that Swaraj aims to participate in with new products," added Sikka.
This new range of compact lightweight tractors has been developed after taking feedback from over 1,500 prospective buyers. Its narrowest track width and low turning radius allow farmers to navigate tight spaces effortlessly, significantly increasing productivity and minimizing crop damage, claimed the company. Mahender Singh Dhoni - Former Indian Cricket Team Captain has been using Swaraj Tractors on his 40 acres farm in Ranchi. The company is likely to use Dhoni as its brand ambassador in the future.
Swaraj Tractors will initially debut two models in the 25 and 29 HP (14.91 – 22.37kW) categories under the Swaraj Target range. Around 50,000 units are sold annually in the 20-30 HP segment.
The Swaraj Target 630 model will first be available through Swaraj's extensive dealer network in Maharashtra and Karnataka, with a competitive price starting from Rs 5.35 lakh ex-showroom. The market introduction of Swaraj Target 625 has already been actioned.
In a market of 8.27 lakh units in FY-23, Swaraj Tractors sold 1.28 lakh units registering a growth of over 23%. During the last fiscal year, its market share grew by 189 basis points to 15.55% from 13.65%.
As against a 6% compounded annual growth rate in the overall tractor market, the 20-30 horsepower range has been growing at 18%, thereby enabling the company to continue its outperformance. The company is targeting about 27-30% market share in the 20-30 horsepower segment.
Rajesh Jejurikar, ED and CEO, Automotive and Farm Equipment Sector at Mahindra & Mahindra said, "Swaraj has a core DNA of power and dependability, we need to inject some more modernity and make the brand more aspirational. We need to see how the farming segment is evolving and we will cater to their needs. Newer, younger people are coming into farming, newer professionals are getting into farming during covid."
(With inputs from Manobhava Baruah)
There was a positive growth trend observed in the LCV category, weighing between 2 and 3.5 tonnes.
The company is expanding its electric bus production to meet growing demand.
OMCs to float tender by month end.