With improving farm sentiments, domestic tractor sales reached an eight-month high this June, with total volumes surpassing the one-lakh mark, while production hit a 21-month peak.
However, domestic sales and exports grew marginally during the first quarter of this fiscal compared with the year-ago quarter.
Total domestic tractor volumes grew 4 per cent at 1,01,981 units in June this year, compared with 98,422 units in June 2023. Last month’s sales were higher by 23 per cent, compared with sales of 82,948 units in May 2024, according to data from Tractor & Mechanization Association.
The June 2024 volume of over one lakh units was the highest monthly number since October 2023.
Top tractor maker Mahindra & Mahindra reported a 6 per cent year-on-year increase in its June 2024 volumes, reaching 45,888 units (43,364 units). For the April-June 2024 period, its tractor volumes grew 5 per cent to 1,16,930 units (1,11,875 units).
International Tractors (Sonalika) reported a 17 per cent growth in June 2024 with 14,062 units (12,056 units). Its volumes in Q1 of FY25 grew 7 per cent to 34,841 units (32,450 units).
Early monsoon
“Early arrival of the monsoon in India has brought positive sentiments in the Indian agri sector as Kharif acreage has increased over 30 per cent in FY25. La Nina conditions are likely to pick up pace in the second half of the monsoons and should cover up the ongoing deficiency in monsoon precipitation,” said Raman Mittal, Joint Managing Director, International Tractors Ltd.
Escorts Kubota’s June 2024 sales slightly increased to 9,359 units (9,270 units). However, the company reported a decline in its Q1FY25 volumes to 24,759 units (25,226 units).
Total tractor production during last month stood at 95,010 units (92,266 units).
For the first quarter of this fiscal, total tractor sales stood at 2.62 lakh units (2.61 lakh units). Production grew to 2.62 lakh units (2.59 lakh units). Exports increased marginally to 24,635 units (24,206 units).
“With retail momentum picking up, supported by land preparation and an increase in Kharif crop sowing, demand for tractors is likely to remain strong in the upcoming months,” said Hemant Sikka, President of the Farm Equipment Sector at Mahindra & Mahindra.