Tractor sales up 48.34 per cent in Nov over last year but down MoM basis
Tractor sales rose nearly 48.34 per cent in November 2020 to 89,530 units from 60,352 units a year ago as rural sentiments remained positive.
According to the Tractor and Mechanisation Association (TMA) sales have increased on year-on-year (YoY) basis while they have decreased 47 per cent on month-on-month (MoM) basis. Tractor sales have been growing on a monthly basis since April 2020, except in the month of August.
Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd said that demand continues to be robust, fueled by an excellent festive season with retail sales being strong during Dhanteras and Diwali.
Rural sentiments remain positive on account of higher Kharif output and good Rabi sowing. Procurement operations for Kharif are on full swing which would keep the rural cash flows healthy. Government’s focus on rural growth continues and outlay under Atmanirbhar Bharat 3.0 will provide further fillip to the industry.
The company sold 31,619 tractors in the domestic market during November 2020, a growth of 55% over last year. In the exports market, we have sold 1,107 tractors, a growth of 79% over last year, said Sikka.
Escorts Ltd Agri Machinery Segment (EAM’s) domestic tractor sales in November was at 9,662 tractors registering a growth of 30.9 per cent against 7,379 tractors in November 2019. The dealer and depot stocks continue to be low. Stock correction in the coming months would continue to push the industry upwards, supported by healthy water reservoir levels and a good harvest. The supply chain is still volatile but should improve going forward. We have taken a price increase this month to pass on the inflation in the commodity prices, said the company.
Export tractor sales in November 2020 was at 503 tractors against 263 tractors exported in November 2019, registering a growth of 91.3%.
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