Phase
I (1959-67)
[Phase - End Market Size : 13,000] -
CARG 16.6% |
| Market
Conditions |
Manufacturers |
|
|
Beginning
of HVY Seeds adoption.
Fertilizer usage goes up.
Imports from Eastern Europe permitted.
Statutory price control on domestic
production in 1967. |
5 |
|
|
Phase
II (1968-80)
[Phase - End Market Size : 70,000] -
CARG 11.6% |
| Market
Conditions |
Manufacturers |
Delicencing
of tractor Industry in 1968.
Import of fully built tractor banned
in 1974.
Statutory price control lifted in 1974.
Increase in rural lending by banks.
Expansion in rural branches of banks.
Accelerated pace of irrigation facilities.
India self sufficient in food grain. |
11
Including Punjab Tractors Limited, whose
commercial production began in 1974 |
|
|
Phase
III (1981-86)
[Phase - End Market Size : 80,000] -
CARG 1.6% |
| Market
Conditions |
Manufacturers |
Complete
Indegenisation of production.
Depressed market due to bank credit
squeeze.
Political problems in the agri-rich
states. |
11 |
|
|
Phase
IV (1987-2000)
[Phase - End Market Size : 272,000]
- CARG 10.7% |
| Market
Conditions |
Manufacturers |
Exemption
from excise on tractors below 1800 cc
attracting concessional rate of duty.
Aug 98 - May 98: 8% reversal
on sale value.
June 98 - Feb 2000: Imposed 8%
duty.
March 2000 onwards: Raised duty
to 16%.
Relaxation of tractor financing norms(minimum
land holding reduced from 10 to 8 acres
and then to 6 acres. Repayment period
increases from 7 to 9 years). |
13 |
|
|
Phase
V (2001 onwards)
[Phase - End Market Size : 162,000]
- CARG (Negative) |
| Market
Conditions |
Manufacturers |
Drought conditions
in many agri-states.
Poor price realization of farm produce
by farmers.
Over supply by major players. |
14 |
|
|
