MoM sales of Tractors dipped 45 percent, in what can be termed as an extremely difficult business situation in the country
The Federation of Automobile Dealers Associations (FADA) recently released Vehicle Registration Data for FY21. The country faced the onslaught of the pandemic from March 2020 and suffered ups and downs throughout the year. Now, the second wave of Covid-19 has returned to cause some more upheaval.
However, despite these limiting factors, domestic tractor wholesales ended the year on a positive note. Talking exclusively of the tractor segment, total retails which had stood at 5,55,315 units in FY20 increased 16.11 percent to 6,44,779 units in FY21.
Mahindra tops the list
Every tractor manufacturer in the country has reported positive sales growth in FY21 over that of FY20 with the exception of Indo Farm. As always, it was Mahindra Farm Equipment Sector (FES) that topped the list with sales of 1,49,683 units in FY21, up 14.65 percent over retail sales of 1,30,557 units sold in FY20.
Mahindra Tractors currently commands a market share of 23.21 percent and has recently announced the setting up a dedicated new plant at Pithampur from where it will produce rice transplanters, potato planters and harvesters. Mahindra Swaraj was at No.2 with a market share of 16.51 percent and retail sales of 1,06,446 units in FY21. This was higher by 19.16 percent over 89,329 units sold in FY20.
Sonalika registered growth of 20.44 percent with 80,998 units retailed in FY21, up from 67,249 units sold in the same period of the previous year. Sonalika kicked off this year with the launch of the first hybrid tractor.
Solis Hybrid 5015 tractor comes in with Japanese hybrid technology and is priced at Rs. 7.21 lakh. It is being introduced along with Japanese partner Yamar Agribusiness Co. Ltd and comes in with the benefits of three tractors in one.
TAFE, Escorts, John Deere
Lower down the order was Tractors and Farm Equipment Limited (TAFE) at No.4 with retail sales of 75,542 units in FY21, up 20.72 percent over 62,575 units sold in FY20. Currently commanding a market share of 11.72 percent, earlier this year the company launched the new Dynatrack Series – a range of premium tractors for agriculture and haulage. The tractor series promises higher productivity with better mileage, durability and comfort. The TAFE Dynatrack tractor series is priced in the Rs 5.60 lakh to Rs 6.50 lakh range and meets the demands of the modern day farmer.
Despite the ongoing pandemic, Escorts received good traction in FY21 with 11.98 percent increase in retail sales. Sales which had stood at 63,119 units in FY20 increased to 70,681 units in the FY21 period. Escorts expects to see similar growth during the current period boosted by record rabi harvest, sustained crop pricing and predictions of a good monsoon.
At No. 6 on the list of best-selling tractor retail sales in FY21 was John Deere with 50,098 units retailed in the said period. This was a 17.65 percent increase over 48,582 units sold in FY20. John Deere currently commands a 7.77 percent market share.
Eicher, CNH Industrial and Kubota also posted positive retails in FY21 as did VST, Force Motors and Captain. However, retail sales of Indo Farm dipped 9.34 percent and was the only tractor maker to report de-growth. Sales which had stood at 1,949 units in FY20 fell to 1,767 units in FY21.
There is a deeper spread of the Corona virus into the rural and semi urban areas as the second wave sweeps the country. These regions have less awareness of COVID-19 protocols and lack proper medical infrastructure and hence demand could go on the decline if positive case counts do not see an ebb sometime soon.