Chennai, May 12
Domestic tractor sales and exports declined in April 2023 when compared with April 2022, but production was higher year-on-year basis.
Total domestic tractor sales fell 11 per cent at 79,288 units in April this year when compared with 89,201 units in April 2022, which was a rebound month in sales. This April sales were also lower when compared with the previous month’s volumes of 82,856 units.
Industry representatives attribute the decline in sales last month to festival mismatch and unseasonal rains amid upbeat farm sentiments.
“Sales de-growth was mainly due to preponement of high demand generating festivals of Navratri and Gudi Padwa in March this year compared to April last year,” said Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd
M&M sales dip
Top tractor maker Mahindra & Mahindra reported a decline of 10 per cent in its domestic tractor sales at 35,938 units in April. Escorts Kubota’s tractor volumes fell 5.5 per cent at 7,252 units during the month.
“However, currently sentiments are upbeat with harvesting and procurement of crops going on in full swing. Wheat procurement is very strong and has already crossed last year’s level. High reservoir levels will aid in Kharif sowing and good cash flow from Rabi crop will further add to liquidity in the hands of the farmers,” he added.
Tractor output, exports
Total tractor production was higher at 86,844 units in April 2023 when compared with 84,144 units in April 2022.
Exports continue to be under pressure as they fell significantly to 7,652 units in April this year when compared with 10,715 units in April 2022 due to challenging market conditions in some of the countries.
In FY23, the domestic tractor industry recorded its highest-ever volumes at 9.45 lakh units, up 12 per cent over FY’22 volumes.
The industry expects moderation in volumes in this fiscal and projects a single-digit growth for FY24, supported by healthy crop prices/MSPs, above-average reservoir levels, government support to farmers in the run-up to elections, and increasing use of tractors in the non-agri segment.