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Journalism of Courage
The downturn in the tractor industry has resulted in an intensification of the fight for market share. TAFE has pipped Punjab Tractors to gain the second position in the domestic tractor industry with a 15.6 per cent market share during the first half of the current fiscal. Mahindra & Mahindra (M&M) has retained its leadership position with a higher market share at 29.5 per cent as against 25.8 percent in the first half of 2001-02.
Industry figures reveal that the tractor industry has witnessed de-growth across all categories — 25 HP, 35 HP and 45 HP. While the 25 HP category saw a 19.2 per cent drop in sales, sales of the 35 HP category declined by 15.3 per cent. The 45 HP category also dropped by a 18.9 per cent in volumes. M&M has maintained its leadership across all the three segments. TAFE has primarily been able to garner a substantial chunk of the 35 HP category with a 22.7 per cent market share.
M&M officials, in a recent analyst presentation, has stated that the company had managed a 9.2 per cent increase in market share in Karnataka where volumes dipped by as much as 23.5 per cent.
M&M has also managed a 3.8 per cent increase in Maharashtra, a state which also witnessed a heavy drop of 45.4 per cent in volumes.
The pressure on most tractor companies continue as they look for alternative growth avenues. Even, M&M, the country’s largest tractor manufacturer is also looking at developing an additional revenue stream through its engine business which would be used in applications such as genset, air compressor and air conditioning.
