Home Commercial Vehicles Sonalika Tractors Registers Strong Growth Of 18.6% In May 2020

Sonalika Tractors Registers Strong Growth Of 18.6% In May 2020

One of the leading tractor manufacturers in India and the country’s top tractor exporter, Sonalika Tractors has registered impressive 18.6% growth in May 2020

This includes both domestic sales and exports. A total of 9177 tractors were sold in May 2020, as compared to 7737 units sold during the same period last year. Sonalika Tractors exports numbers in May 2020 were 1537 units, which translates into YoY growth of 25%. This has further strengthened the company’s ranking as the No. 1 tractor exporter from India.

Sonalika Tractors growth trajectory is made possible not just by its innovative products, but also through its focus on strengthening relations with its channel partners and community. To support its ecosystem, the company has launched several schemes such as online disbursal of incentives to dealer sales team, easy access to spare parts and service, standby tractors for customers, and extension of warranty & renewal period.

The company has also contributed to the fight against Covid-19 through initiatives such as supplying food and health kits to daily wage workers and migrants, setting up isolation wards in hospitals, developing advanced ventilator system and providing mobile clinic for corona testing.

Mr. Raman Mittal, Executive Director, Sonalika Group,
Mr. Raman Mittal, Executive Director, Sonalika Group,

Sonalika Tractors’ top selling product is Sikander series that accounts for 75-80% of the company’s entire portfolio. As may be recalled, Sikander series was launched just a couple of years back. The company is a leading player in more than 50 hp tractor segment and is currently focused on achieving leadership position in more than 40 hp segment.

With that in mind, the company has launched four new next-gen tractors. These are Sikander DLX (10 deluxe features), Chhatrapati (for Maharashtra), Mahabali (puddling special for Telengana) and Tiger (designed in Europe). Designed for local needs of farmers, these tractors could contribute 20-25% of the overall sales of Sonalika Tractors.

Registering double digit growth is quite commendable, especially in these challenging times when the automobile industry is experiencing significant drop in sales due to lockdown and weak consumer sentiments. Thankfully, tractor sales have not been impacted, as farming sector was allowed to operate even during lockdown. Sonalika Tractors had recently resumed production and is currently working at 85% capacity. The company is aiming to achieve 100% capacity by June 2020.

Some other factors have also helped boost sales, for example, the Kharif season, which has increased demand for customized tractors. In addition to tractors, demand for specialized equipment is also expected to go up in the next few months. Another reason for increased tractor sales is that farmers have adequate cash with them. The reforms and incentives for farmers introduced by the government have delivered positive results. Even during lockdown, it was ensured that farmers did not face any issues. With these factors, Sonalika Tractors witnessed 26% growth in tractor deliveries in May 2020.

As farmer sentiments continue to be positive, it is expected that the tractor industry will grow 10% in June 2020. Sonalika Tractors expects that its performance in June will be even better than May 2020. Increasing preference for mechanized farming is another factor that will drive tractor sales in both domestic and international markets.

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