Domestic tractor sales likely to pick up in the second half of 2023-24

Rating agency ICRA pointed out that the domestic tractor industry volumes remained healthy and represented a 12 percent YoY growth in FY2023, touching an all-time high of 9.45 lakh units

Tractor wholesales in the first half (H1) of 2023–24 (FY24) amounted to 4,69,383 units, representing a 3.7 per cent year-on-year (Y-o-Y) decline. This decrease is attributed to the effects of El Niño, fluctuations in rural cash flow, and the high base set in the previous year.

The industry remains optimistic, anticipating that normal rains in September have positively impacted rabi sowing in the central, northern, and western regions of the country. As a result, the second half (H2) may witness growth, leading to the financial year concluding with low single-digit growth.

Rating agency ICRA highlighted that domestic tractor industry volumes