Tractor sales for November 2020 increase in view of festive demand and higher kharif sowing and rabi sowing
Federation of Automobile Dealers Associations (FADA) released Monthly Vehicle Registration Data for November 2020. The 42 day festive period has been particularly noteworthy as the period from 17th Oct 2020 to 28th Nov 2020 has seen a 48.70 percent growth in tractor sales in the country.
This was primarily due to the buyers in this segment putting off purchases in view of the pandemic situation that the country faced over the previous months. Demand was also fuelled by the festive season and increased buyer sentiments in view of higher kharif output and a good rabi sowing period. Government’s focus on rural growth along with an outlay under the Atmanirbhar Bharat 3.0 could continue to boost sales in this segment.
YoY Tractor Sales
Taking into account year on year tractor sales, it can be seen from the attached table that every leading tractor maker in the country noted increased sales, with some exceptions. Total tractor retails in the past month stood at 49,313 units, up 8.47 percent as against 45,462 units sold in Nov 19. MoM sales however, were not as encouraging, down 10.58 percent as against 55,146 units sold in Oct 20.
Mahindra Farm Equipments topped the list with a market share of 24.27 percent. The company noted retail sales of 11,966 units, up 4.91 percent as against 11,406 units sold in the same month of the previous year. MoM sales however, dipped 4.01 percent as 12,466 units had been sold in the previous month.
Mahindra Swaraj sales also increased substantially in the past month. Currently commanding a 17.26 percent market share, the company retail sales stood at 8,510 units in Nov 20, up 1,199 units as against 7,311 units sold in Nov 19. Mom sales was a de-growth as sales dipped from 9,461 units sold in Oct 20.
Another tractor maker to note increased sales in the past month was Sonalika Tractor. Sales increased 8.03 percent in Nov 20 boosted by festive demand to 5,747 units, up from 5,320 units sold in Nov 19. However, Oct 20 sales had stood at 6,451 units thereby relating to MoM de-growth. The Sonalika range of tractors consists of the recently launched Tiger series along with the Sikandar DLX, Mahabali and Chattrapati.
TAFE, Escorts, John Deere
Chennai based TAFE, currently commanding a market share of 1.37 percent noted retail tractor sales to the tune of 5,609 units in the past month, up 13.27 percent as against 4,952 units sold in the same month of the previous year. MoM sales however dipped 19.99 percent as 7,010 units had been retailed in Oct 20.
Escorts were among the few tractor makers that noted both YoY and MoM de-growth. YoY sales dipped 5.09 percent to 4,753 units, down from 5,008 units sold in Nov 19. MoM sales suffered an even higher de-growth by 13.52 percent as the company had retailed 5,496 units in Oct 20.
John Deere, the only foreign brand to have a presence among the top rated tractor makers in the country, commands an 8.59 percent market share. November 2020 retail sales stood at 4,238 units, 19.75 percent growth over 3,539 units retailed in Nov 19. MoM sales however, dipped 8.43 percent as the company had retiled 4,628 units in Oct 20.
Other Tractor OEMs such as CNH Industrial, Kubota, VST and Force Motors all noted an increase in YoY sales while MoM sales dipped while Eicher saw both YoY and MoM decline in retail sales.