The Economics of High-End Tractors


wealthymatters

In the past, many progressive Indian farmers opted for customization to make tractors more comfortable because manufacturers didn’t give any standard options in those days.For example some Punjab farmers retrofitted air-conditioned cabins on their 75 HP John Deere tractors in the absence of any standard option.By doing so they enhance efficiency. With an AC tractor, they could plough their fields for more than 15 hours a day compared with the 5-6 hours  on a regular tractor. To modify tractors,people downloaded the design from the internet and customizes their machiness for varied needs.

These days,high-end luxury tractors,make such effort unnecessary.Unlike regular tractors, these luxury machines are not defined by their engine horsepower and other technical specifications alone. The customization options and other high end features make them different from the regular tractors. Eg,Ferrari allows farmers to have 4-wheel drive options on equal size wheels (regular tractors comes in different wheel sizes) and front-engine mounting for low turning radius and ideal weight distribution. The famed oscillating chassis gives the machine the flexibility to navigate on hill slopes and terraced farms. Others offer higher-powered engines, heat ventilation and air conditioning in the cabin , air suspension seats and tiltable steering,

These tractors cater to specialty farming needs and target fruit orchards, vineyards and high-end plantations. Besides this, premium tractors also meet the diverse needs of high net worth individuals like owners of golf courses, luxury resorts, heritage properties and sports stadiums.

Luxury tractors sales are just a fraction of the 6-lakh tractors sold every year in India. While regular models are available in the price band of Rs 2-6 lacs, the high-end customized machines — which have captured the imagination of the aspirational and high spending Indian farmer — are available in the Rs 7-18 lacs (ex-showroom) price band. With large land holdings, states like Punjab, Uttar Pradesh and Andhra Pradesh are the biggest markets for high-end tractors.

Though the high end tractors cost more than double the regular tractors, many farmers  swear on the potential of the high-end customized machines. They note the high power to weight ratio, which allows intricate farming and the high fuel efficiency of these machines which  enables them to increase their income substantially.

About Keerthika Singaravel
Engineer,Investor,Businessperson

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