The automotive industry is a term that covers a wide range of companies and organisations involved in the design, development, manufacture, marketing, and selling of motor vehicles, towed vehicles, motorcycles and mopeds. It is one of the world's most important economic sectors by revenue.
The term automotive industry usually does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as repair shops and motor fuel filling stations.
The term automotive was created from Greek autos (self).
History
The automotive industry began in the 1890s with hundreds of manufacturers that pioneered the horseless carriage. For many decades, the United states led the world in total automobile production. In 1929 before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons.
Mahindra Tractors
Mahindra Tractors, the farm equipment division of Mahindra & Mahindra, builds and sources tractors that are sold worldwide across six continents. Mahindra is also among the top three tractor manufacturers in the world.
Mahindra has a huge consumer base in India, China and America and a growing base in Australia. The company builds more tractors in India than any other manufacturer and has the capacity to build 150,000 tractors a year.
Mahindra India
Tamil village women on a Mahindra 575 Di at sunset over a sugar cane field, India
Mahindra Tractors is number one in sales in India - the largest tractor market in the world. and it has been the market leader since 1983. Its sales are predominantly in the states of Gujrat, Haryana, Punjab, Maharashtra and the Southern States. Its sales in Gujarat are under the label Mahindra Gujarat and its sales in Punjab are under the label Swaraj. In 1999, Mahindra purchased 100% of Gujarat Tractors from the Government of Gujarat ?? and Mahindra purchased a 64.6% stake in Swaraj. in 2004.
SONALIKA GROUP
Sonalika group manufactures the best quality of tractors that caters to the agricultural as well as commercial sector of the country in the most effective way.
They produce the most well techniqued and fuel efficient tractors with the inexhaustible range to choose from different varieties.
Comparisons between Mahindra and Sonalika tractors….
M&M launched a 15-horsepower tractor, Yuvraj-215, for less than Rs 2 lakh last year. The cheapest tractor it sold before this was Rs 2.8 lakh. Yuvraj-215 is already among the firm's high-demand models, having sold 6,000 units so far.
Competition is on its heel, though. Punjab-based Sonalika Tractors is developing two categories of sub-Rs 2 lakh tractors including a specialised one for horticultural farmers who grow high-end specialised produce like orchids and maintain vineyards. They will hit the farm early next year.
"Everybody in the industry is looking at this segment," Sonalika Tractors executive director, Raman Mittal, says.
A combination of factors labour scarcity and rising wages, better affordability of small marginal farmers and sales arriving in traditional markets like Punjab among others - has slowed demand for 31-40 HP tractors that account for 45% of all tractor sales, while pushing demand for less-powerful, more fuel efficient tractors.
Tractor manufacturers are now driving technological innovations that would bring down the threshold - both price and acreage - at which a farmer can look for automation.
India has one of the lowest tractor penetrations in the world with just 14 tractors in 1,000 hectares of farmland. Out of about 105 million farmers who own land in India, about 80 million are small and marginal farmers, according to rural consultancy shops.
Sonalika Tractors, meanwhile, expects its specialised tractor for horticultural farmers to be a hit because states like Haryana have been nudging their farmers to diversify into on higher-yielding horticulture crops. In the first quarter of the current financial year alone, 30 hectares of additional area were brought under fruit cultivation.
Low horsepower tractors work well in soft soil conditions, such as river basins. At present, tractor penetration in Punjab, Haryana and parts of UP is almost saturated.
KEY FEATURES OF TRACTOR INDUSTRIES IN INDIA.
THE FIRST ASPECT IS BASED ON AGRICULTURE DEVELOPEMNT .
Transformation
Further diversification of cropping patterns from low value to high value crops such as fruits, vegetables, flowers and other horticultural crops for domestic consumption, pr ocessing and export Regaining Agricultural Dynamism a key goal and key feature.
3 Now as per India aspects-
A Largest in the world.
B One third of total production.
C Positive growth for last 4 decades.
Thus these company manufacture the tractors according to the industries needs of India and can work with various segments in different productions and agriculture to make a well developed growth and economy of the country.
Demand forecasting for tractor industries in India.
Indian Tractor Industry: Growth to slow down from current levels in short term. The Tractor industry has always been a barometer for the state of rural economy in India. The Indian tractor market has witnessed a significant rise post liquidity crises of FY08 and FY09. Healthy monsoons in most parts of the country, rise in minimum support price , favorable farm credit scenario coupled with shortage of agricultural laborers owing to rise in employment opportunities in rural areas through National Rural Employment Guarantee Act (NREGA) led this growth.
CARE Research believes that multiple use of higher HP tractors (i.e. large tractors), increasing demand from infrastructure projects and rising penetration in western and southern India, which is predominantly a large tractor market, is expected to push large tractor sales by healthy levels in the next 4-5 year period.
THIS DEMAND FORCASTING IS BASED ON THE FOLLOWING FEATURES.
BASED ON THE CONTEXT 0F F10 AND REPORT OF NEWSPAPERS.
In FY10, almost all the manufacturers reported a healthy rise in their top-line, driven by growth in both volumes and realization. Operating margins also observed improvement owing to drop in raw material prices. Going forward, it is expected that the industry's top line will continue to witness a healthy growth scenario; however, the industry would face challenges of rising raw material prices and increase in interest cost, which would strain the bottom line.
CARE RESEARCH INCLUDES THE FOLLOWING ASPECTS
CARE Research has developed a detailed statistical model that attempts to forecast the domestic tractor sales. Tractor sales are forecasted based on the agriculture sector GDP growth, net sown area and agriculture credit disbursements. Other qualitative factors like macro-economic outlook, increasing nonagricultural usages and shortage of laborers owing to rise in rural employment under National Rural Employment Guarantee Act (NREGA), etc have been built in this demand forecasting model.
THUS IT SHOWS THAT
IN CASE OF FOREIGN INTERNATIONAL MARKETS
The main purpose of this study was to estimate the market demand of tractor stock in Africa, West Asia and other target markets for Iran manufactured tractors. Box and Jenkins, and Exponential Smoothing methods were applied, using data from 1961 to 2006. Results indicated that demand for tractor stock in the target markets will be approximately 533 thousand sets in 2012 and consequently the annual gross demand for tractor would be equal to 26 thousand sets in this year. According to the results obtained these countries are, therefore, a suitable market for the export of Iran manufactured tractors. As a result, it can be suggested that for preservation and extension of tractor export market of Iran, extension along with diversity in production be planned and, appropriate commercial treaties signed to stabilize the domestic producers' market as necessary and needed….
CONCLUSION
THUS THE COMPARITIVE STUDY OF TRACTOR MARKETS WITH RESPECT TO INDIA AND THE FOREIGN MARKETS.
BIBLIOGRAPHY
1. Wikipedia
2. Economics times
3. Times of India
4. India today magazines
5. Other sources
