Sonalika Tractors has posted highest ever domestic sales growth for the month of July 2020
Sonalika Tractors domestic sales is reported at 8,219 tractors, up from 4,788 units sold in July 2019. This is a 71% growth. The company continues to be on growth trajectory, and performing better than industry growth. Exports are reported at 2,004 units. Cumulative sales for July 2020 stood at 10,223 units. Though this is the highest ever monthly domestic sales growth, MoM sales has declined by 32.74%. In June 2020, company had sold 15,200 tractors.
Cumulative domestic sales growth through April – July 2020 is reported at 17.7 percent. The company says this is the highest across the Indian tractor industry. Sonalika attributes its stellar performance to its new tractors customized to meet varied geographic needs, and applications as per specific requirements of farmers.
Given that lockdown has been lifted in phased manner, Sonalika has been able to report YoY growth since May 2020. For May, deliveries were up at 25 percent, for June 2020, 55 percent growth (Billing) is reported, and that number is up at 71.7 percent growth (Billing) in July 2020.
Sonalika looks forward to an uptick in demand and focus on growth momentum in the forthcoming festive season too. For now, estimates look promising with the tractor industry as a whole having recorded overall growth during this period of lockdown relaxation as compared to other industry segments, which are yet to reach pre-Covid-19 levels for the most part. While the overall CV segment isn’t kicking up a storm, but tractor and from equipment possibilities look upbeat at present.
Use of tractors in Indian farming
With large segments of Indian farming becoming clusters of fragmented land holdings, using a tractor isn’t necessarily possible for a large number of small land holders. Even basic tractors would cost upward of 5 lakh, and this leaves bigger framers with the ability to make such purchases.
Sales has been robust in the last 3 months considering the monsoon season is on, and farming an essential activity. With purchases abruptly stopped in March end, and completely restricted in April 2020, and part of May 2020 plagued with business inactivity, tractor sales resumed quickly when lockdown was lifted.
As an activity, farmer is one where disguised unemployment is rampant. With an increase in number of tractors, some basic processes can be concluded in quicktime, and without the usual dependency on labour. Using tractors can help deal with any disruptions that lead to labour shortage.
Raman Mittal, Executive Director, Sonalika Group, said, “Happy to share that we have recorded highest ever domestic growth of 71.7% in July ‘20 beating industry growth with overall sales at 10,223 tractors. This consistent performance, creating new record high and gaining market share is a testimony of our strong foundation and investment in world’s no.1 vertical integrated plant, largest channel partners, technology savvy supply chain and best team. We have launched new tractors with advanced technology features at the same cost of current products, thus helping the farmers to upgrade & enhance their productivity and income.”