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SUVs to tractors: M&M not taking foot off pedal, on recovery road

Favourable agri macros, improving SUV demand, and easing commodity prices augur well for automaker

M&M draws aggressive 6-year plan for auto and farm equipment segments
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A positive farm output and better agricultural commodity prices are being driven to some extent by the war since Ukraine and Russia are major players in the global market and their absence may lead to opportunities for other nations.

Devangshu Datta
The automotive industry had a difficult time since the pandemic. While supply-chain issues have persisted, the boom in commodity prices led to higher raw material costs as well. In addition, weak rural and semi-urban demand led to downturn in domestic tractor and two-wheeler sales.

The first quarter of 2022-23 (FY23) has seen more optimism across the sector. The tractor segment in particular could see revival in demand and better volumes.

Automobile companies are still suffering from chip-sourcing issues which exacerbated after the Russia-Ukraine stand-off, but expect these shortages to start easing in the second half of the financial year. Commodity

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First Published: Jun 30 2022 | 10:57 PM IST

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