Tractor demand will continue to remain buoyant, says M&M's Hemant Sikka

With about 75 per cent of tractors sold on finance, we have aligned finances very well starting in May itself building out further in June and July

Aided cash flows to farmers, kharif sowing, and government spending, tractor sales in India continue to grow. Mahindra & Mahindra’s Farm Equipment Sector (FES), which is part of the $19.4 billion Mahindra Group, reported an 18 per cent growth in domestic sales of 19,174 units, highest ever July sales.

Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra Ltd told T E Narasimhan the company noticed a turnaround in tractor business in Decembe. Things were going very well, said Sikka. Edited excerpts from an interview.

What are the key factors driving tractor sales?

This is the peak season for tractors.