Maharashtra Tractor Financing Market

Driven by Increased Tractor Sales and hassle-free Financing Process


Author(s):Kartik and Tania Bansal

Product Code:KR1409

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Published on

January 2024

Total pages


About the Report

About the Report

Market Overview:

The Maharashtra Tractor Financing Market is anticipated to grow significantly in the coming years owing to factors affecting the market including Increased Tractor Sales and hassle-free Financing Process. Banks and NBFCs are the major finance providers in the Maharashtra Tractor Financing Market. Additionally, growing strategic partnerships among the FPOs, Agritech Companies and Banks for market expansion is further accelerating the industry.

Maharashtra Tractor Financing Market

NBFCs are leading the market because of their easier application procedures, shorter approval times, and more flexible repayment plans. L&T Finance, Mahindra Finance, and Chola enter life are some of the major NBFC providers in the market.

In Maharashtra, there are about 20 original equipment manufacturers (OEMs), and about 40 financial institutions.  Mahindra dominates the Maharashtra Tractor Financing Market with more than 40% share. Sonalika and John Deere also have significant market share in the industry. Additionally, the ecosystem is further supported by government regulatory bodies including the Department of agriculture and Welfare.

Maharashtra Tractor Financing Industry

Maharashtra Tractor Financing Market Analysis

  • Due to their use in both basic farming operations and heavy load hauling, the majority of tractors sold in Maharashtra had less than 45 horsepower.
  • Banks offer cheap interest rates, but their procedures are lengthy and complicated, with little reduction in overhead costs. Due to the involvement of the IT team and credit, the process is lengthy. Adivasi and OBC groups are more inclined to use banks to finance their government subsidies.
  • The reason NBFCs are market leaders is because they have less strict eligibility requirements, such as a less strict requirement for land ownership or income data in papers.
  • Occasionally, they approve the file based on a review of the reputation of the community and the background of blood relatives. Furthermore, overhead expenses are waived off or lowered to approximately 1.5%.
  • Sales of tractors surged in 2021 during the COVID-19 pandemic because farming activities persisted throughout that time. The largest tractor sales were recorded in 2023 due to an increase in minimum support prices (MSP), which raised agricultural revenue.
  • Customers view price, tractor model, and local brand image as essential when purchasing tractors. In Maharashtra, peer influence is a major factor while purchasing a tractor.


Key Trends by Market Segment:

By Type of Tractors: The Maharashtra Tractor Financing Market is classified into two major categories: New Tractors and Used Tractors. New Tractors dominate the Maharashtra Tractor Financing Market with 72% of the market share followed by Used Tractors. New tractors are dominating the market as farmers generally give preference to new tractors and new tractors are far more expensive than used tractors, thus this segment is leading the industry.

Maharashtra Tractor Financing Market Size

By HP Category: Based on the HP Category, the Maharashtra Tractor Financing Market is categorized into three main categories: 55 HP. 45-55 HP is the single largest HP Category in the  Maharashtra Tractor Financing market with a market share of 45% followed by 55 HP. 45-55 HP is leading the market as this category of target is considered best for the farming operations along with hauling heavy loads.

Maharashtra Tractor Financing Market Share

By Type of Region: The Maharashtra Tractor Financing is divided into six major regions (divisions): Pune, Aurangabad, Nashik, Amaravati, Nagpur, and Konkan. Among the six regions of the Maharashtra Tractor Financing market. With 29% of the market share Pune region is ruling the market followed by Aurangabad and Nashik. Solapur, Sangli, and Srirampur are the top three contributing districts in the Pune division in tractor sales.

Maharashtra Tractor Financing Market Growth

Competitive Landscape:

Major Players in The Maharashtra Tractor Financing Market

Maharashtra Tractor Financing Market Revenue

  • Mahindra is leading the Maharashtra Tractor Financing Market with more than 40% of the market share and has a network of Maharashtra Tractor Financing Market.
  • In 2023, Tractor loans of about INR 2,700 crores were successfully disbursed by Mahindra Finance owing to flexible repayment options and a strong customer retention rate.
  • SBI and Axis Bank are the leading banks that are providing tractor finance to the farmers, POs & Associations, and Construction & Logistics Companies are present in the Maharashtra Market demanding different types of Tractors at minimal interest rates.
  • NBFCs such as Cholamandalam and L&T Finance are dominating the NBFC finance segment in the market. Overall, NBFC attracts a large segment of creditors for tractor finance since their procedure is far more straightforward than banks.

Maharashtra Tractor Financing Market Outlook

Recent Developments:

  • In 2023 Maharashtra to increase mechanization in the agricultural sector government launched Tractor Anudan Yojana. Under the scheme, farmers are provided subsidies on agricultural implements and machinery from the Government of Maharashtra through this scheme. Farmers will be provided with Tractors, Power Tillers, Bullock bullock-powered implements, Processing Sets, Harvesting Western Technology etc.
  • In Oct-Nov 2022, Mahindra Finance launched the Shubh Utsav Festive Campaign to increase awareness & promote product offerings during the festive season. The campaign involved Below-the-line (BTL) activations at car & tractor dealerships & marketplaces.
  • Recently Mini Tractor Anudan Yojana was launched by Maharashtra’s government for economically disadvantaged farmers. This scheme provides them the opportunity to acquire mini tractors at a subsidized rate, with the government offering a 90% subsidy.

Scope Of The Report

Scope of the Report

Maharashtra Tractor Financing Market


By Type of Tractor


·       New Tractors

·       Old Tractors


By HP Category



·       45-55 HP

·       >55 HP


By Type of Region


·       Pune

·       Aurangabad

·       Nashik

·       Amaravati

·       Nagpur

·       Konkan


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Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:

  • Investors
  • Manufacturers & Distributors
  • Fleet & Equipment Owners
  • Government Entity
  • Environmental Advocates
  • Automotive & Machinery Professionals


Time Period Captured in the Report:

  • Base Year: 2023


Major Players Mentioned in the Report:

  1. Mahindra Finance
  2. Cholamandalam
  3. L&T Finance
  4. SBI
  5. Axis Bank

Table of Contents

Table of Contents

1. Executive Summary

1.1. Executive Summary: Market Size and Competition, FY’23

1.2. Executive Summary: Market Segmentation, FY’23

1.3. Executive Summary: Recommendations

1.4. Executive Summary: Opportunity for TVS Credit

2. Overview of tractor market in India

2.1. Tractor production and sales in India, FY’19-FY’23

2.2. Competition scenario in India tractor market, FY’23

2.3. Sale of tractor state wise, FY’23

2.4. Average tractor density per net sown area, FY’20

3. Overview of tractor market in Maharashtra

3.1. Overview of tractor market in Maharashtra, FY’23

3.2. Ecosystem of Maharashtra tractor market

3.3. District wise sale of tractors in Maharashtra in FY’23

3.4. District wise sale of tractors in Maharashtra for Mahindra in FY’23

3.5. Number of Mahindra Tractors Dealers in Maharashtra as of FY’23

3.6. Key Models of Mahindra Tractors

3.7. Maharashtra Tractor Market Size Basis Volume & Loan Disbursed, FY’23

4. End User Analysis

4.1. State wise estimates of full time farmers, FY’23

4.2. State wise details of Farmer Producer Organizations (FPOs) as of FY’23

4.3. Identifying the Customer Cohorts in Maharashtra Tractor Market 

4.4. Usage of Tractors in Maharashtra basis Crops Grown

4.5. Customer Journey

4.6. Customer Preference for buying a tractor in Maharashtra

5. Mahindra Finance Due Diligence

5.1. Overview of Mahindra Finance, FY’23 

5.2. Overview of Mahindra Tractor Financing in Maharashtra, FY’23 

5.3. Business Model Canvas- Mahindra Finance

5.4. Number of Branches Present for Mahindra Finance as of FY’23

5.5. Market Size & Segmentation of M&M basis tractor sales & loan disbursed, FY’23

5.6. Channels to Source Customers 

5.7. Differentiators of Mahindra Finance

5.8. Cross Comparison of Mahindra Finance with Banks and NBFCs- new tractors

5.9. Cross Comparison of Mahindra Finance with Banks and NBFCs- used tractors 

5.10. Loan Application Funnel Process- new and used tractors

5.11. Process of Attracting Customers

5.12. Key Partnerships of Mahindra Finance 

5.13. Government Schemes

5.14. Campaigns launched by Mahindra Finance

5.15. Channels to Handle Customer Complaints

5.16. IT Tools used by Mahindra Finance 

5.17. Evaluation of a tractor

5.18. Sales team structure with KRAs and KPIs, Productivity & Appraisals

6. Analyst Recommendations

7. Research Methodology


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Research Methodology

Research Methodology

Step1: Identifying Key Variables: Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around the market to collate industry-level information.

Step2: Market Building: Collating statistics on the Tractor finance market over the years, penetration of marketplaces and service providers ratio to compute revenue generated for the Maharashtra Tractor Financing Market. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.

Step3: Validating and Finalizing: Building market hypotheses and conducting CATIs with industry experts belonging to different companies to validate statistics and seek operational and financial information from company representatives.

Step4: Research output: Our team will approach multiple tractor finance-providing companies and understand the nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from tractor finance providers.

Maharashtra Tractor Financing Market Analysis

Frequently Asked Questions

Frequently Asked Questions

How big is the Maharashtra Tractor Financing Market?

The Maharashtra Tractor Financing Market was valued at ~ INR 7,700 Cr in 2023.

What are the Key Factors Driving the Maharashtra Tractor Financing Market?

Increased Tractor Sales and hassle-free Financing Process are likely to fuel the growth in the Maharashtra Tractor Financing market.

Who are the Key Players in the Maharashtra Tractor Financing Market?

Mahindra Finance, Cholamandalam, L&T Finance, SBI, and Axis Bank are some of the key players in the Maharashtra Tractor Financing Market.

What are the latest trends in Maharashtra Tractor Financing Market?

Digitalization and Online Platforms, Customized Financing Solutions, and Technology Integration in Assessment are some of the current trends in the Maharashtra Tractor Financing Market.

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