Friday, Mar 31, 2023

Tractor Sales In India Register 3.3% Growth In July

Tractor Sales In India Register 3.3% Growth In July

Monsoon has caught up to normal, sowing has picked up, lockdown lifted; these should augur well for the remaining months this year, say observers

Tractor sales in India grew by 3.29% in July 2021 as states started lifting the lockdown to contain the spread of COVID-19. Total domestic tractor sales were 66,217 units in July 2021, against 63,137 in July 2020.

Mahindra Group (M&M+Swa+Trak) Tractors recorded a 5.34% growth in July. The company sold 25,769 units in July 2021, whereas last year corresponding it was 24,463 This is an apparent growth in 1,306 units. Mahindra tractors’ market share also increased by 0.77% in July 2021.

According to Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd., “We have sold 25,769 tractors in the domestic market during July 2021 with a growth of 5% over last year. Demand remained buoyant in July as crop sowing operations gained traction with monsoon picking up pace across all the regions. Easing of COVID curbs & robust farm incomes on account of record Rabi crop procurement has bode well for the rural economy. We continue to stay bullish on tractor demand in the coming months owing to revival of monsoon, hike in MSP of key Kharif crops and the upcoming festival season.”

He added, “In the exports market, we have sold 1,460 tractors with a growth of 55%.”

However, Tafe Group (MF+ Eicher) tractor sales decreased by around 5.25%. The domestic Tafe tractor sales were 11,112 units in July 2021; whereas in July 2020, it was 11,728 units. With this, Tafe lost their market share by 1.54%.

Sonalika Tractor also registered a 1.27% decline in the domestic tractor market in July 2021. It sold 8,115 units in July 2021, against 8,219 in July 2020. They lost market share by about 0.57% this month. 

John Deere Tractor sold 7,244 units in July 2021; while in July 2020, it sold 7,521 units, which shows a 3.65% decrease in its domestic tractor sales. This time the company lost 0.80% of its market share.

Meanwhile, Escorts group recorded domestic tractor sales of 6,055 units in July 2021, registering a growth of some 22.25%. The company's market share grew from 9.28% in July 2020 to 11.94% in July 2021.

“The three-week slowdown in monsoon activity from mid-June to mid-July temporarily affected sowing of Kharif crops leading to some slowdown in sales in July,” the company said in a filing earlier.

“However, monsoon has now caught up to be normal, and sowing has also picked up pace in the last few days. This should augur well for the remaining months of the year. Also, most of the dealerships are now open and are able to fully serve customers. Commodity inflation continues to put pressure on the margins despite three price increases in the last nine months,” it added.

New Holland Tractor sales decreased by 4.55%, and it lost 0.28% market share. Against 2,310 units sold in July 2020, the company achieved 2,205 in July 2021.

Kubota Tractor domestic sales went up from 1,414 units sold during July 2020 to 1,953 this year corresponding, registering a growth of 38.12%. As a result, the company's market share increased by 0.76%.

But VST Tractor registered a 13.90% decline this month with a 0.21% market loss, while Preet Tractor recorded domestic tractor sales of 503 units in July 2021, up from 201 units in July 2021, registering a growth of 150.25%.

However, the company's market share increased considerably from 0.32% to 0.77%. As a result, Preet Tractor gained 0.45% market share in July 2021.

(Data and information courtesy Tractor Junction)