FUTURE PROSPECTSTractor sales are expected to remain healthy in fiscal 2010-11, given the goodrabi crop this time around, the continuing firmness in the prices of agricultural products, and the healthy monsoons anticipated during the comingkharif season. Moreover, improving farm mechanisation levels (with labour availability in rural areas declining), increasing non- agricultural use of tractors, higher credit disbursements for agriculture, and sharper Governmental focus on the farm sector (larger budgetary allocations) are also expected to encourage tractor sales. The industry¶s profitability is however expected to remain moderate in the medium term, considering the high competitive intensity and low capacity utilisation levels, although larger players could benefit from scale economics. As for margins, while they have seen an improvement in 2009-10, they would remain vulnerable to adverse changes in commodity prices. While some States in the northern region have achieved high levels of tractor penetration and farm mechanisation, on an all-India basis, the penetration remains low, which along with the current shortage of farm labour and consequently rising labour costs, may be expected to lead to greater mechanisation and use of tractors. The long-term prospects for the Indian tractor industry hinge on agricultural growth and Government support in areas such as financing availability, tax exemptions, and fiscal stimulus for rural development. Overall, ICRA expects the long-term growth rate for the Indian tractor industry to trend around the historical average of 6-8%, supported by increasing tractor penetration. This figure show that there is a futute potential for the industry in india point of view .the average uses of tractor in the world is also high when we compare it to india tractor scenario. in some part of India is ratio on maximum penetration on tractor.s leadership become more stronger.now. High rate of Indian GDP. The major weakness is one of them having easy and cheap cost availability of manpower in India. SALES TRENDS In long term Mahindra and Mahindra expected to remain the leader in tractor industry due to well diversified products mix .SWOT analysis of tractor industry in india Strength: Govt. Threats: Government focusing only on growth and agriculture having minimum growth comparing to other sector. support for the agriculture sector is the major strength for increase the relevant demand in the future. Opportunities: Low penetration of tractors in Indian agriculture. strong presence in Indian tractor market at a long time . land filling etc. Use of tractor increasing on airplane careering .Commercial use like contraction.his cost efficient operation process and as well as rising the global share in world tractor industry and global sales . bank and other financial institution in India Weakness: Mansoon is a big factor to determine the sale of tractor in the India and so that the sale is depend on mansoon . Government want 4% agriculture growth from 2015 Easy availability of finance for tractor loan by the govt. . The export of Indian tractor increase worldwide and there is increasing signs in the future also. post acquisition of punjab tractor it. Most of the farmer in India are very poor and they cannot afford to buy a tractor . There have little land to the farmers so most of the Indian farmer are not need much for the tractor . are expected to remain strong competitors in the medium-to-long term. VST Tillers and HMT are likely to be marginalized further in the long run due to lack of diversified product portfolio. poor nation-wide distribution network and weakness in cost structure. After the acquisition of Eicher Motor¶s tractor division. Global players like John Deere and New Holland India are likely to provide strong competition to the other well established players in the coming years as they strengthen their Indian product portfolio and distribution network and remain major exporters. TAFE has emerged a strong number two in the industry with better product portfolio and distribution network (although overlapping may cause some loss of share). The relative ranking of players based on market share will remain stable with increasing polarisation of market position between stronger and marginal players. International Tractors is expected to maintain its share as it would not be able to grow at higher than industry growth rate. Smaller players like Force Motors.The key success factors for the players will continue to include diversified product portfolio. TAFE¶s share went up to 28 per cent after its acquisition of Eicher Escorts and International Tractors. . with a market share of 14 per cent and 10 per cent. nation-wide distribution strength and cost competencies. respectively. authorizing expenditure in terms of approved delegation of financial powers in furtherance of the objectives of NATRiP. y Approve. NATRiP Implementation Society (NATIS). y Supervise working of the PIU. and semi government organization in India which regulate the automobile industry and control over the whole automobile sector in India . namely. This is the apex body for implementation The Governing Council of NATIS is headed by Secretary to Government of India. y Approve capital and revenue budgets as submitted by PIU. implementation and commissioning of NATRiP as well as laying down the policy framework for the same. The PIB shall take a final decision on the advice granted by the global consultants wherever the PIU is not in a position to agree with the same. Leading and distinguished automotive industry professionals are also part of the Governing Council The primary functions of NATIS involve: y Overall supervision of planning. . The Presidents/Representatives of Society of Indian Automobile Manufacturers (SIAM). Automotive Component Manufacturers Association of India (ACMA). contract and redraft the scope and constituent activities of NATRiP subject to any stipulations that the government may make while approving the project. Ministry of Heavy Industries and Public Enterprises and has representatives of various stakeholders in its fold. expediency as well as involvement of all key stakeholders in the implementation process. Government of India and Automotive Industry have joined hands to set up an independent registered Society. rectify. modify.In order to facilitate requisite flexibility. Automotive Research Association of India (ARAI) is also a key implementation partner and is represented in the Governing Council by its President. Tractor Manufacturers Association (TMA) and Automotive Tyre Manufacturers Association (ATMA).REGULATION INSTITUTION NATRIP There is many govt. augment. remuneration. SIAM is engaged in actively articulating industry¶s concerns at various domestic and international fora and is engaged in a . discipline and control of all the employees of PIU from the date of setting up of PIB as notified by the Government. conceived. procedures and arrangements for conduct of business at PIU. MoHI&PE has been engaged in formulating policy guidelines and framework to promote enduring and self-sustained growth of the Indian Automotive Industry. Ministry of Heavy Industry & Public Enterprises (MoHI&PE) is the nodal Ministry of the Government for automotive industry in India and is in charge of framing and administering Auto Policy of the Government. Recognizing the importance of comprehensive up gradation of testing facilities for Automotive Industry for fulfillment of the objectives of Auto Policy. Secretary. y Maintain liaison with other national and international agencies. MoHI&PE has in active handholding with Indian automotive industry. Society of Indian Automobile Manufacturers (SIAM) is the apex Industry body representing 38 leading vehicle and vehicular engine manufacturers in India. MoHI&PE heads the NATRiP Implementation Society (NATIS). y Be the nodal authority for regulating. modifying. and notify rules and regulations. MoHI&PE is the focal Ministry for implementation of NATRiP. y Be the nodal authority for fixing honorarium to experts/personnel whose services are availed in implementation of NATRiP either under PIU or in any other location/assignment. developed and steered the National Automotive Testing and R&D Infrastructure Project (NATRiP) since 2001. frame. Auto Policy of the Government envisages establishment of a globally competitive Automotive Industry in India and doubling of its contribution to the Economy by 205%. extending and suitably altering the service conditions. y Constitute such committees and fix their terms of reference and scope of activities as needed for smooth conduct of its business or for assisting the PIU. as may be required for smooth implementation of the Project. fixing. y Periodically review implementation of the Project.y Approve. y Oversee the fund flow and fund utilization and cause the accounts of NATIS to be submitted to the Government / any other agency required by the Government. emission.number of research and developmental initiatives in the sector in collaborative efforts with various agencies. NVH. The first Perspective Plan for NATRiP was presented to MoHI&PE by SIAM in April 2002. ARAI carries out sponsored research for the automotive industry in the area of engine. electronics etc. Tractor Manufacturers Association (TMA) represents the Agricultural Tractor industry in India which manufactures world¶s largest number of tractors. ARAI is providing technical support to NATIS for implementation of NATRiP. ARAI has been authorized by the Government of India as a certification agency for automobiles and components. . TMA is represented by the Chairman of its Technical Committee in the Governing Council of NATIS Automotive Research Association of India (ARAI) is a co-operative industrial Research organization formed by the Indian Automotive Industry and is affiliated to Ministry of Heavy Industries and Public Enterprises. SIAM has played an active role in further development of NATRiP roadmap. Upgradation of test facilities at ARAI forms part of NATRiP. structural dynamics. SIAM is represented by its President in the Governing Council of NATIS. ARAI is represented by its President in the Governing Council of NATIS. TMA actively participates in the policy and regulation formulation for Tractor industry and is a key implementation partner for NATRiP. There are 12 leading tractor manufacturers in the fold of TMA. Most of the certification activity in the country is performed at ARAI. It helps Government of India in formulating the automotive standards and in providing technical support on various issues/projects.