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Tractor makers sell 71,740 units in December; up 41 per cent year on year

However, month on month the sales dropped for the second month in a row, after reporting continued growth since April

Topics
Tractor Sales | tractor industry | Tractor loans

T E Narasimhan  |  Chennai 

the tractor industry has be­aten street expectations comprehensively
Production in December 2020 stood at 91,969 units as compared to 49,320 units in December 2019.

rose by around 41 per cent in December 2020 to 71,740 units as compared to 50,803 in December 2019. However, month on month the sales dropped for the second month in a row, after reporting continued growth since April.

The demand was driven by higher rabi acreage, government's support in procurement and rural development schemes among others, said industry players.

According to TMA data, tractor makers sold 71,740 units (including 10,491 exports) in December 2020 as compared to 50,803 units (7,997 exports) in December 2019. In November 2020 total was estimated to be around 89,530 units (7,200 exports).

Production in December 2020 stood at 91,969 units as compared to 49,320 units in December 2019.

Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd said, the wholesale volumes continued to be strong fueled by restoration of channel inventory post the festive season, announcement of hike in tractor prices by major OEMs and anticipation of sustained demand on the back of higher rabi acreage, GoI support in kharif procurement & rural development schemes.

chart

His company sold 21,173 tractors in the domestic market during December 2020 with a growth of 23% over last year. In the exports market, the company sold 1,244 tractors, a growth of 60% over last year.

Escorts Ltd Agri Machinery Segment (EAM) in December 2020 sold 7,733 tractors, the company's highest ever December sales and registering a growth of 88 percent as against 4,114 tractors sold in December 2019.

Domestic in December2020 was at 7,230 tractors registering a growth of 90 percent as against 3,806 tractors in December2019.

The company said that post lockdown, this is the first month where the company could supply as per demand of customers, some of whom waited long to get their preferred tractor brand.

"Going forward all macroeconomic factors remain in favour of continued growth and we do not expect any significant supply-demand gaps. Rising inflation, however, continues to be a worry," said the company.

Sonalika Tractors has said that it registered the highest ever December sales of 11,540 tractors.

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First Published: Mon, January 11 2021. 10:26 IST