Dip in tractor sales a temporary blip for M&M, demand seen rising again

Farm sector worries and marginal market share loss resulted in tepid tractor sales in December

The stock of automobile major Mahindra and Mahindra (M&M) was the biggest loser among the BSE Sensex pack, dropping about 5 per cent on Wednesday. 

Uninspiring December sales numbers, particularly that of its tractor division, led to selling in the stock. 

While the overall sales numbers came at 39,755 units, up just a per cent higher than December 2017 volumes, weakness was significantly felt in the tractor division. 

Tractor volumes for the month dipped by 6 per cent year-on-year, led by a 2 per cent dip in domestic demand and 45 per cent decline in exports.

A host of reasons, ranging from farm sector