Monsoons have arrived early and are predicted to be normal and evenly spread across the country signalling revival in rural retails in the months to come
Total tractor retails as announced by The Federation of Automobile Dealers Associations (FADA) have dipped 56.60 percent MoM. Sales in April 21 which stood at 38,285 units, fell to 16,616 units in May 21. While it is not fair to compare YoY retails in view of the ongoing pandemic, we go back two years to May 2019 for a better understanding. Retail sales in May 2019 had stood at 39,417 units relating to a 57.85 percent de-growth.
When assessing OEM-wise MoM sales growth it can be seen that every OEM suffered due to lower sales. Mahindra Tractors reported retails at 3,803 units in May 21 as against 8,067 units sold in April 21. However, the company recorded an increase in market share to 22.9 percent as against 21.07 percent in a MoM basis.
Mahindra Swaraj also reported lower retails to 2,952 units in May 21 from 6,222 units retailed in April 21 while market share increased from 16.25 percent to 17.8 percent MoM. Mahindra Swaraj has introduced a special program for 1st year engineering students in critical and holistic industry experiences in view of long-term career development. Students have been selected from top engineering colleges in the country offering agriculture engineering.
International Tractor retails stood at 2,216 units in May 21 from 4,718 units retailed in April 21, though market share increased to 13.3 percent from 12.32 percent share held in April.
Tafe, Escorts, John Deere
Three tractor makers in India that noted a dip in both retail sales and market share were TAFE, Escorts, John Deere. TAFE tractor retails dipped to 1,901 units in May 21 from 4,506 units sold in April 20. In view of the current situation, TAFE is offering free tractor rental scheme to smaller farmers in Tamil Nadu during the cultivation season. The scheme is valid from May to June and will benefit around 50,000 farmers who can freely avail 16,500 Massey Ferguson and Eicher tractors and 26,800 equipment on a rental basis to farmers owning two acres or less.
Likewise Escorts and John Deere also saw sales dip to 1,703 units and 1,316 units respectively in May 21 from 4,542 units and 3,223 units retailed in April 21.
Eicher, CNH and Kubota also saw lower retails in the past month as did Captain, Indo Farms and VST. Force Motors retail sales dipped to 45 units in May 21 from 244 units sold in April 21 while market share stood at just 0.3 percent from 0.64 percent on a MoM basis. Other tractor makers reported retails at 705 units in May 21 from 1,494 units sold in April 21.
This Vehicle Retail Data has been collated as on 08.06.21 in association with Ministry of Road Transport & Highways, Government of India and collected from 1,294 out of 1,497 RTOs.