Corona Virus has made its impact felt all across the Auto sector
Sales of 4-wheelers / 2-wheelers / 3-wheelers / CVs have all plummeted down to unimaginable levels. The tractor industry too hasn’t been immune, and it too has seen its overall sales numbers go down by a whooping 86% in the month of May’2020.
In May’2019, overall sales of tractors across the country stood at around 34K units mark. However, in May’20 sales figures had contracted to just 8,317 units, merely a 15% of last year’s performance. Rajasthan came out as the state with maximum number of tractor sales with the total amounting to 2,815 units. Last year in the same month the North Western state had registered sales of 6,469 units. Sales decline over last year stood at 56%, which is comparatively the best in all other larger states.
Uttar Pradesh, which usually contributes to highest number of tractor sales every month stood at the 2nd spot. Its sales declined by a considerable margin of 75% however the state still managed with a podium finish. In the month of May’20, it registered sales of 1,986 units against a total of 8,098 units in May’19.
Karnataka came at the third spot in state-wise tractor sales while Chhattisgarh stood at the 4th spot. Karnataka registered sales of 1,041 units whereas Chhattisgarh saw sales of 764 tractor units. In pre-corona times, around 8-10 states would have their monthly sales in 4 digits but due to the overall slowdown in economy, only 3 states could register sales of more than 1,000 units.
Maharashtra could claim the 5th position in the tally while Tamil Nadu came at the 6th spot. Both states witnessed their sales decline heavily by 86% & 82%, respectively. On a deeper analysis, it is evident that 16 states registered absolutely 0 Tractor sales in the month of May’20. While the names include smaller states like Mizoram/Nagaland, even larger states like West Bengal and Uttarakhand had 0 Tractor sales in the month of May’20.
Tractor sales are usually used as an indicator by many economists to assess the overall health of the economy. A good crop season usually translates into better tractor sales, leading to an upswing in the rural economy. Usually, an improvement in rural economy is followed by a similar lift in demand in urban areas as well. It remains to be seen how and by when can the rural economy rejuvenate which has been facing the double whammy of an overall slowing growth and the Corona Virus outbreak.
Statewise Tractor Sales May 2020
|No||State / UT Tractor Sales||May-20||May-19||Diff||%|
|18||J & K||0||321||-321||-100.00|
|20||D & N and D & N||0||4||-4||-100.00|