Mahindra & Mahindra Ltd Farm Equipment Sector, TAFE Group and Sonalika Tractors, three leading tractor makers in the country, have all noted increased demand in August 2020 which has been slowly rising since the past two months.
There were several factors that led to this increase in sales. A favourable monsoon has spurred up sales in this segment augmented by a good kharif season, timely and an abundant availability of labourers and several favourable government agri focused initiatives.
Three farm bills have also been approved bring in some relief to farmers. The Essential Commodities (Amendment) Bill, Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill and Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill have been cleared by Parliament which will further increase sales in this segment.
Gujarat, UP and Maharashtra topped at first three positions in terms of tractor sales in the month of August 2020 with Maharashtra showing the maximum growth. Sales in Gujarat stood at 14,166 units, up 4 percent as against 13,621 units sold in August 2019 while tractor sales in the state of UP surged 12.23 percent to 12,571 units in the past month up from 11,201 units sold in the same month of the previous year. Sales in Maharashtra increased 169.64 percent to 7,798 units, significantly lower as compared to the top two states but a notable increase over 2,892 units sold in August 2019.
Other states which saw increased tractor sales were Rajasthan (54.16 percent), Bihar (44.69 percent and Haryana (4.16 percent). Sales dipped in Chattisgarh to 2,484 units, down 11.60 percent as against sales of 2,810 units in August 2019.
West Bengal sales revived YoY by 39.97 percent up from 1,774 units sold in August 2019 to 2,483 units sold in the past month. Likewise, tractor sales in Tamil Nadu also noted an upsurge by 73.24 percent to 2,292 units, from 1,323 units sold in August 2019. Sales also increased in the state of Odisha by 40.65 percent to 1,730 units in the past month, up from 1,230 units sold in August 2019.
Tractor sales fell in the states of Punjab (2.35 percent), Arunachal Pradesh (6.25 percent) and Meghalaya (75 percent) with most North Eastern states posting either 1 or 0 sales in the past month. Kerala noted an 85.29 percent sales decline with just 5 units sold in the past month as compared to 34 units sold in August 2019.
Tractor sales in Jammu and Kashmir noted the maximum de-growth last month. Sales dipped 94.52 percent to just 8 units, as against 146 units sold in August 2019.
Taking into account OEM wise tractor retail sales in August 2020 it may be seen that Mahindra and Mahindra sales increased 69.4 percent to 23,503 units, up from 13,871 units sold in August 2019 while Sonalika sales surged 80 percent to 8,205 units and Escort tractor sales increased 79.4 percent to 6,750 units. These tractor makers expect rural sentiment to remain on a positive note which will lead to robust tractor sales as the festive season approaches.
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