Revised emission standards for above 50 HP tractors are slated to become applicable for tractors from January 2023 bringing in a subsequent change in the HP-wise mix in tractor categories, informed ICRA. However, a big proportion of the overall industry (<50 HP, constituting 92 pc of sales in FY2022) would continue to be governed by Bharat Stage TREM IIIA norms.
Commenting on the impact of the revised norms on the tractor industry, Mr. Rohan Kanwar Gupta, Vice President, Corporate Ratings, ICRA, said, “India remains a medium to high HP tractor market, with 80 pc of the sales coming from the 30-50 HP categories. The revised emission norms applicable from January 2023 would apply only to above 50 HP tractors, impacting 7-8 pc of the overall industry volumes.”
“The technological know-how to meet the revised norms has been readily available with the OEMs as the export models are already meeting the evolved emission norms. The pass-through of hike to customers is, however, expected to be only gradual for the price-sensitive farming community. OEMs are in the process of realigning their product portfolio, with tractors offering higher torque at lower HP being added to the portfolio; the same would lead to a shift in HP-wise mix with the 41-50 HP segment gaining at the expense of the above 50 HP segment,” Mr. Kanwar added.
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