Tractor retails for the month of July 2021 increased 6.64 percent, over sales of July 2020 – Reaching Pre-Covid levels
July 2021 proved to be a good month in terms of retails for every segment, be it two and three wheelers, passenger and commercial vehicles and tractors. Each of these segments noted outstanding growth, some of which even reached pre-covid levels. Favourable monsoons, a boost in sowing operations and hike in MSP of key Kharif crops has led to recovery in the rural economy and thereby to increased sales of tractors.
Tractor retails, as announced by The Federation of Automobile Dealers Associations (FADA), saw growth of 6.64 percent to 82,388 units in July 2021, up from 77,257 units sold in July 2020. It was even better growth when compared to that of July 2019, prior to the COVID-19 pandemic striking the country. Retails had stood at 55,543 units in July 2019 thus relating to a 48.33 percent increase.
Top 3 – Mahindra, Swaraj, TAFE
Taking OEM-wise tractor retails into account, it may be seen from the attached table that Mahindra and Mahindra’s Swaraj division commanded the list. Mahindra tractor retails stood at 20,210 units in July 2021, up from 18,891 units sold in July 2020. Mahindra currently commands a 24.53 percent market share. Increased retails were also reported by Mahindra Swaraj Division. Retails in the past month stood at 13,110 units, up from 12,441 units sold in July 2020 though market share dipped from 16.10 percent to 15.91 percent YoY.
Chennai based, TAFE tractor retails were at 10,047 units along with a market share of 12.19 percent which was practically on par with market share at 12.52 percent held in July 2020 when sales stood at 9,669 units. The company recently launched the new Massey Ferguson 244 DI puddling special tractors in the 44 hp range for paddy cultivation. Massey Ferguson 244 comes in two variants – MF 244 DI PM and MF 244 PD.
ITL, Escorts, John Deere
Sonalika, (ITL) another leading tractor manufacturer and supplier in India, has also reported increased retails in the past month. Retails stood at 9,139 units in July 2021, up from 9,097 units sold in July 2020 though market share dipped marginally from 11.77 percent to 11.09 percent YoY. Sonalika has announced investment of Rs 200 crores in a new plant in Amb, Himachal Pradesh to manufacture harvesters.
Escorts Limited retails remained flat in 2021 and 2020 at 8,822 units and 8,846 units sold in the respective months. Most of the company dealerships have now opened for sales while commodity inflation continues to put pressure on margins relating to 3 price hikes in the past 9 months.
John Deere reported retails at 6,109 units in July 2021 up from 5,118 units retailed in July 2020. The company also gained in market share which was at 6.62 percent in July 2020 but increased to 7.41 percent in the past month.
Eicher, Kubota, Force Motors
Eicher Tractors, CNH Industrial India and Kubota also posted increased retails with rising market share in July 2021 over that of July 2020 while retails of VST Tillers dipped to 924 units in July 2021 from 948 units sold in July 2020. Captain Tractors also noted lower retails in July 2021 at 515 units, down from 852 units sold in July 2020 while retails of Force Motors remained on par at 449 units in both months. Taking other tractor makers into account, retails stood at 2,479 units in July 2021, up from 1,843 units sold in July 2020.
Retail sales through the month of August 2021 are also expected to be promising as the segment has noted increase in inquiries and demand following forecasts of favourable monsoons extending to August and September. The upcoming festive season will also bring in a boost in demand.