The Indian agricultural ecosystem’s quicker adoption of e-tractors will promote early market development, giving homegrown producers the chance to expand their worldwide leadership in e-tractor production and open up export markets.
JMK Research & Analytics estimated diesel tractors contributed 7.4 per cent of the country’s yearly fuel consumption. The continuous use of diesel tractors has further caused greenhouse gas emissions to rise, with India thereby accounting for 7.3 per cent of world emissions, primarily from transportation and agriculture at the rate of 8.36 per cent and 14 per cent, respectively. The headwinds of growing global concerns on ecological balance and sustainability therefore influenced the transition towards the electrification of tractors and adoption of advanced electric tractors to reduce these emissions. The effective implementation of e-tractors in India will require a thorough and cooperative effort from several sectors. The Indian agricultural ecosystem’s quicker adoption of e-tractors will promote early market development, giving homegrown producers the chance to expand their worldwide leadership in e-tractor production and open up export markets.
The concept of electric tractors (e-tractors) however is still at a nascent stage in India. However, over time, the nation shall embrace and advance in electrification, creating ample opportunities for the e-tractors market to develop soon. In India, diesel tractors account for around 8.81 lakh registered units or 3.57 per cent of the total vehicle population in FY2024. The country continues to be a dominant player in the segment thereby exporting 10.33 per cent of the manufactured tractors to the international markets.
The diesel tractor market has eventually risen at a CAGR of 8.29 per cent between FY2016 and FY2024, indicating an enormous prospective in this sector. The top five companies made up roughly 85 per cent of the market share in FY2024.
With the most tractor registrations and the highest number of units sold between FY2014 and FY2024, Uttar Pradesh emerged as the state with the largest agricultural base, according to Vahan Database. The extent of automated farming in India’s key agricultural centres is demonstrated by the high tractor sales volumes in Madhya Pradesh, Rajasthan, Maharashtra, and Telangana. The growth from FY2023 to FY2024 is marginally lower at 8.84 per cent, whereas the annual average growth rate (AAGR) from FY2022 to FY2023 is 10.12 per cent (VAHAN 2024). The statistics demonstrate an apparent halt but overall steady growth. The country’s agricultural diversity is reflected in the geographic distribution of tractor sales, with states with intensive farming, such as Uttar Pradesh, exhibiting greater adoption rates.
A diminishing labour force and expanding food demand represent two primary challenges facing India’s agriculture sector, necessitating production quality and quantity increases. Although increasing farm mechanisation is necessary to boost productivity, it has boosted the use of diesel-powered tractors, which has raised the cost of operation and carbon emissions. The use of e-tractors offers a practical way to deal with these problems sustainably. As previously mentioned, e-tractors provide a sustainable substitute by lowering reliance on fossil fuels and greenhouse gas emissions. They additionally bring about a more economical cost of operation by requiring less fuel and maintenance. The drop in diesel demand may also alleviate the fiscal burden on the government, by providing fossil fuel subsidies.
As of June 2024, 127 e-tractor units have been registered cumulatively in India, as per JMK Research; including imported e-tractor vehicles from other countries and sales of prototype e-tractor vehicles built in India. In terms of state-wise deployment, the highest number of e-tractors has been registered in key agricultural states such as Haryana and Punjab.
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