Resources For The Future

Auto And Farm Equipment Manufacturers Are Making Hay. The Market Is Ready For New Technologies And Over The Last Couple Of Years, There's Been A Flood Of New Products.

- Jayashree Kini Mendes

SUPER-EFFICIENCY OF PRODUCTS, MAINLY owing to self-steering systems, is driving the business for auto and farm machinery. Say what you might, but just like the food business, auto and farm equipment business will always see brisk business.

Over the last couple of decades, India has advanced much in terms of auto components and farm equipment manufacturing. In terms of auto components, according to a report by Automotive Component Manufacturers Association of India (ACMA), the Indian auto components industry is expected to register a turnover of $100 billion by 2020, backed by strong exports ranging between $80-100 billion by 2026, from the current $11.2 billion.

The farm equipment sector, which mainly comprises tractors and implements for farming, is set to grow moderately between 6-7% in FY19, given the high base attained in the current fiscal, predicts ICRA.

“The government remains committed towards rural development and agri-mechanisation, a critical component in improving the state of agriculture in the country, coupled with other factors such as increasing rural wages and scarcity of farm labour are likely to aid growth in industry volumes over the long term,” says said Anupama Arora, VP & sector head, corporate sector ratings, ICRA Ratings.

Global autonomous farm equipment market share is anticipated to exceed 7.5 million units by 2024. Shifting trends towards usage of advanced systems, precision farming, adaptation of GNSS system and

TECHNOLOGY INCLINED

There are reasons that attribute to the rapid growth of this industry. This includes suppliers’ ability to manufacture at scale, a buoyant end-user market, adequate liquidity, and improved consumer sentiment.