Industry Analysis1. Product PurposeThe tractor is the primary agricultural equipment used in the agricultural industry. Tractors have an important contribution in the mechanization of agriculture. Agricultural tractors reduce human labor and help increase agricultural production. There is an ever-increasing demand for agricultural products due to the increase in population, so tractors have an important role to play in increasing agricultural production by automating agricultural production. However, tractors are also used for applications such as transportation, power generation, and industrial applications such as forklifts, loaders, and road rollers.2. Segment Share The tractor industry is segmented based on engine power. It is classified into:1. Less than 30 HP (<= 30 HP)2. From 31 HP to 40 HP (> 30 HP and <= 40 HP)3. 41 HP and 50 HP (>40 HP and <=50 HP)4. Greater than 50 HP (> 50 HP) Segmentation is done based on the following factors:1. Regional demand for each of these tractor segments is different.2. Shifting tractor power demand. These segments also vary in terms of market share, regions where these tractors are preferred, and demand for each of these tractors. Small Tractors (<=30 HP) Mid Range Tractors (>30 HP and <=50 HP) Large Tractors (>50 HP) Soil Conditions Soft Soil All Soil Types in India Hard Soil Usage For Most Farms small For transportation For larger farms Preferred regions Western parts of Uttar Pradesh, Rajasthan, Haryana and Bihar Uttar Pradesh, Rajasthan, Madhya Pradesh and Andhra Pradesh Western and southern regions Key players Mahindra & Mahindra, TAFE Mahindra & Mahindra, TAFE Mahindra & Mahindra, Escorts, TAFELIndian tractor industry is mainly a medium power market, there is...... middle of the paper..... .rs are less aware of the prices and offers. The customer base is also highly fragmented. It involves a high conversion cost for the buyer. Apart from the use of tractors in the agricultural sector, it also has other commercial purposes such as transportation, construction and also in airlines, hotels and resorts for carrying luggage and is of very smaller proportions. Because of the purposes specified above, tractors serve as critical inputs in many ways and the strength of this force is low. Threat of Substitutes: In case of agriculture the available substitutes are bullock carts, human labour, light commercial vehicles, trucks and SUVs. Apart from these, tractors are also used for transportation activities and serve as inputs for many activities. Therefore the strength of this force is low. The attractiveness of the sector, considering the five forces mentioned above, is moderate.