Mahindra’s Swaraj Tractors Bets Big On Niche Segment With Heavy-Duty Models

Mahindra Group's subsidiary Swaraj Tractors plans to foray into the heavy-duty segment with models in the 70-plus horsepower range for niche buyers, while investing over Rs 100 crore in expanding paint shop capacity at its Punjab facility.

In an interaction with PTI, Swaraj Tractors' Chief Executive Officer, Gaganjot Singh, also said that the company targets rolling out at least one new product a year over the next 5-7 years, in addition to geographical and portfolio expansion of its next-gen premium tractor Protek, among others.

Swaraj Tractors currently has three manufacturing facilities and a high-tech foundry, all in Punjab, and offers tractors from a compact lightweight range to up to 70 horsepower (HP). These tractors cater to a wide range of farming needs, from traditional crop cultivation to modern, lightweight, and precision-based tasks.

The company's current lineup includes models like Swaraj 855, 735, 744, 960, 742, 963, the compact Swaraj Target, and the recently-introduced Naya Swaraj series and the Protek.

"Over the last few years, we are seeing two kinds of evolutions -- the higher HP starting to grow faster than the industry average, and then on the lower side, lower HP is also growing faster in the market. The one in the middle, 30-40 HP, is starting to decline as a mix, while 40 upwards is starting to increase. And below 30 is also on an increasing trend," Singh said.

He attributed these trends to a mix of factors, including increasing horticulture activities, where less than 30 HP tractors are highly useful, and harvesting and the post-harvesting requiring heavy-duty or higher HP tractors for more power.

"I think with the (increased) horticulture and higher HP, and the need for having more productive assets, we will continue to evolve ourselves to higher HP ranges. So, in the mid-to-long-term, we will see our presence in the higher HP segment becoming stronger than what it is today.

"So, we will foray into above 70 HP (segment) in the coming times. And I think that follows the trend of where the application needs are emerging," Singh added.

The tractor industry logged an 18.94 per cent sales growth at 1,050,077 units in FY26, compared to 888,285 units retailed in FY25, driven by the GST cut (in September) and other factors, with the Mahindra Group (including Swaraj Tractors) securing a combined market share of 43.6 per cent during the previous fiscal.

"In the last one year, the company has had some positive tailwinds. The GST cut was clearly a huge push from the government side and one which really translated positively for us," he said, adding that despite low sales during the period of Operation Sindoor and Punjab floods, the company continued on the growth trajectory.

In May this year, the group reported a 22 per cent increase in total tractor sales, including Swaraj Tractors, with domestic sales rising 23 per cent year-on-year.

"We have an outlook for April to July, and then we have an outlook for August to March. April to July, we will see continued trends of high growth in the industry. So, whatever you witnessed post-GST, upwards of 30 per cent, I think we are going to be pretty much more or less at the same pace in the first three to four months of the next financial year," Singh said.

The next eight months, he said, the company is likely to see two impacts - one of a high base effect, which is going to come into play. "And the second effect is (expected to be) of El Nino, and this we believe is not going to be uniform all across India but would vary from state to state." Singh, however, said that the reservoir levels across different states are quite healthy, and the country saw a very good crop, in terms of harvest and rate, in the last season.

"So I think the farmers do have healthy cash flows with them," he stated.

At the same time, he said, the high base effect and the dispersed El Nino effect are going to have an impact on the industry.

"Our overall anticipation of the industry for the year is going to be around single-digit growth; mid-single digit growth is what we anticipate on a full-year basis," Singh said.

According to him, as far as the overall industry is concerned, the segment with 40 HP or higher models is going to continue to grow fastest, supported by the government, while the segment with less than 30 HP is to be supported by horticulture.

Singh said that the company plans to expand its high-tech, next-gen tractor variant, Protek, nationally and expand its portfolio. The variant is currently present in select markets.

"Besides this, we will be expanding Protek feature expansion as well, and will enrich it primarily with some comfort features as we project ourselves in the long term, he said.

"As the customer needs to evolve towards some of the stuff that we've been talking about, we will evolve to technology accordingly," he said and added that Protek premium variant volumes are expected to grow into mid-teens over a period of time.

Stating that the company is a bit "under capacity" in its paint shop, he said, "As we do it (expand capacity), we do it with a state-of-the-art paint shop. Our ambition there is that we are able to land a finish of a tractor, which is long-lasting."