The tractor industry reported a 6 per cent increase in domestic sales year-on-year in November. However, volumes fell 38 per cent cent when compared to October.
Total domestic tractor sales stood at 72,266 units in November this year, when compared to 67,940 units in November 2022 and 118,232 units in October 2023, according to the data provided by the Tractor & Mechanisation Association (TMA).
Industry representatives and analysts attributed the increase in year-on-year volumes to positive festival demand. However, unseasonal rains in some of the major agricultural States had a negative impact on the demand, thereby leading to a decline in volumes on a sequential basis.
“The festive season saw high demand pull in the domestic market, supported by Kharif harvest realisations, with retails being strong during Dhanteras and Diwali,” said Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd.
Top tractor-maker Mahindra & Mahindra reported a 6 per cent increase at 31,069 units in November 2023, while Escorts Kubota’s domestic tractor volumes grew 7 per cent at 7,855 units
Overall festival demand was good barring a few States where demand was marginally impacted due to scanty and/or unseasonal rainfall, said Escorts Kubota.
Last month, the total tractor production stood at 60,014 units, the lowest monthly number in 2023. In November 2022, the industry produced 78,709 units and in October the production was at 94,438 units.
Tractor exports continue to be subdued and total exports stood at 6,722 units in November this year, when compared to 9,884 units in November 2022.
total sales
For the April-November 2023 period, total domestic tractor sales stood at 6.6 lakh units, when compared to 6.8 lakh units in the same period in the previous fiscal, posting a decline of 3 per cent.
While the tractor industry people present a positive picture for the remaining period of this fiscal, supported by prevailing positive macroeconomic factors, industry analysts project a muted growth for FY24.
“Tractors witnessed a reduction in volumes month-on-month while growing in mid-single digit year-on-year as El Nino impacted monsoons, thus recording below average rainfall in some of the important agricultural regions. This along with the cyclicality observed in this segment, and high base shall end up the year with muted growth,” said a report of LKP Securities.
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