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Tractor sales cross the 100,000 mark in September; only third time in 3 yrs

Tractor sales had crossed the 100,000 mark in October 2018 and October 2019 previously

Topics
Tractor Sales | Tractors | Tractor loans

T E Narasimhan  |  Chennai 

the tractor industry has be­aten street expectations comprehensively
Tractor sales continued their healthy run as Kharif sowing witnessed record progress in the area.

crossed the 100,000-mark for the first time in 2020 during September, with a total of 116,185 units sold — up 27 per cent compared to the previous year. This included exports of 7,600 units.

This is for the third time in three years that have crossed the 100,000-mark, according to the Tractor and Mechanization Association (TMA).

This rise was spurred by record kharif sowing — after a good rabi season — that ensured high disposable incomes, said Vinkesh Gulati, president of the Federation of Automobile Dealers Associations (FADA).

Hemant Sikka, president of farm equipment sector (FES) at Mahindra & Mahindra, said retail demand was buoyant because of a good monsoon, higher kharif acreage, and continued government support, including higher minimum support price (MSP) for key crops. “We are looking forward to a very robust demand in the festive season,” he said.

M&M’s FES division saw domestic sales of 42,361 units in September, compared to 36,046 units the previous year, an 18 per cent increase.

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Escorts’ agri machinery segment sold 11,851 in September 2020, the highest-ever for the month, registering growth of 9.2 per cent over the previous year.

The company said rural demand remained positive because of a lower base in the previous year, pent-up demand after lockdowns were lifted, and positive macroeconomic factors.

Good availability of retail finance also helped improve farmers’ sentiment, the firm added.

The company said that it was currently operating at close to its peak capacity, and was also trying to ramp up production and supply to meet the excess demand.

Sonalika Group reported 51.4 per cent domestic growth, surpassing the industry average. Raman Mittal, executive director of Sonalika Group, said farmers’ positive sentiment helped maintain growth momentum. “We are buoyant about the upcoming festive season,” he said.

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First Published: Tue, October 13 2020. 11:17 IST