Tractor sales register over 20% growth in 2013-14

Tractor sales in domestic market witnessed over 20 per cent growth in 2013-14 compared to 2012-13 as a result of bumper monsoon in western and southern markets coupled with increased demand from the farming community.

According to Tractor Manufacturers Association data, tractor sales totalled 634,151 units in 2013-14 in domestic market compared to 526,912 in 2012-13.

According to Industry analysts, there was robust demand for tractors from western and southern regions which received good monsoon last year, while the same area faced drought in 2012. In 2012-13, tractor volumes dipped three per cent on account of large scale drought like conditions in several states, led by Maharashtra, one of the biggest tractor markets.
 

They also added bumper harvest, more remunerative prices for wheat, guar and soyabean, timely arrival of monsoon and new product launches could have propelled sales in the current financial year.

Speaking to Business Standard, L D Mittal, Chairman, Sonalika Group of Companies(maker of Sonalika brand tractors) said, "These days, tractors are not only deployed in farm sector only but they are being used as multi-purpose tools for transportation, harvesting, etc. In addition to this, there was acute shortage of labour in the farm sector, so farmers are going for mechanisation.Regular hikes in minimum prices for various crops coupled with better rainfall in western and southern region also pushed sales."

He added,"We have registered 28.5 per cent increase in domestic sales in 2013-14 compared to 2012-13. Our total domestic sales was 75,000 units in 2013-14 compared to 50,852 units in 2012-13. Further, while the industry witnessed negative growth in exports, we grew by 26 per cent. In 2013-14, we exported 9,500 units while it was 7,548 units during the previous year."

The company is exporting its product to 74 countries.

The total Industry exports in 2013-14 was 62,677 units, while during the previous year it was 62,890 units, according to TMA.

On being asked about the outlook for the current fiscal, Mittal said, "I expect the tractor industry will grow by 12-15 per cent in 2014-15. The Southwest Monsoon which is likely to be below normal in 2014 might not have much effect on domestic tractor sales."