Higher horsepower tractors get costlier

Chennai: The higher-end 50HP and above tractors will cost Rs 50,000-Rs 60,000 more come April as they transition to higher emission norms. According to ICRA, the top end of the tractor market will see a 6%-8% increase in prices due to the migration to new emission norms.

“With these new norms, the CRDi engine comes into play and so the cost increase will be higher than when the industry transitioned to the current TREM III A emission norms ten years ago,” said Rohan Kanwar Gupta , VP & sector head, corporate ratings, ICRA.

As a result of the price hikes, the tractor industry could take a hit on the sales front. “For FY21-22, the industry should close with 8.35 lakh units, which is down 7% from the previous fiscal,” added Gupta. “In FY22-23, the decline will be another 4%-6% with overall volumes staying around eight lakh units.” The 50 HP and above segment comprises around 10% of the tractor market.

The rest of the tractor industry is scheduled to move to the new emission norms in April 2024 though the expectation is that there may be a deferment given the fact that the current norms have seen two postponements already. 

Source: The Times of India