Tractor sales in India has grown at 28.4 percent in September 2020 over sales of September 2019
Despite the current pandemic situation that the country is going through, tractor sales seem to see an upward trajectory. There are many reasons for this increase in tractor sales, even as most other sectors of the economy are facing challenges.
The Government of India has passed three agricultural bills in parliament and the sector is clocking a 3.4 percent rise in Q1 2020-21. Favourable monsoons, increase in kharif sowing area and the return of farm labourers has also contributed to an increased buyer sentiment in rural markets.
Mahindra commands 39 percent market share
Most OEMs noted double digit growth in September 2020 over that of September 2019. Total tractor sales stood at 1,08,649 units, up 28.4 percent as against sales of 84,639 units in September 2019. At No. 1 spot was Mahindra Farm Equipment domestic sales in the past month stood at 42,361 units, up from 36,046 units sold in September 2019. Exports stood at 1,025 units taking total sales to 43,336 units in September 2020 up from 37,011 units sold in the same month of the previous year.
Chennai based, TAFE Tractor and Farm Equipment sales increased 38 percent YoY to 19,973 units in September 2020, up from 14,472 units sold in September 2019. Market share of the company also noted an increase from 17.10 percent to 18.38 percent in the months in question.
Sonalika Registers Highest Montly Sales
Next in line was Sonalika Tractors at No. 3. The Hoshiarpur based tractor makers have reported sales of 16,000 units in September 2020, up 51.4 percent as against 10,571 units sold in the same month of the previous year. Taking into account domestic and exports, sales touched 17,704 units making this the company’s highest ever monthly sales to date. The new next-gen series tractors – Tiger, Sikander DLX, Mahabali and Chattrapati have been well received and contributed to these outstanding sales.
Escorts Limited also reported a 10.54 percent increase in September sales. Sales which stood at 10,521 units in September 2019 increased to 11,453 units in the past month. The company market share however dipped 1.89 percent from 12.43 percent held in September 2019 to 10.54 percent in the past month.
Tractor makers John Deere and New Holland also noted increased sales along with that of Kubota Tractors. Kubota sales increased 0.2 percent to 1,275 units in September 2020. The company had forged an alliance with Escorts Limited early last year and has announced local manufacture of the Kubota MU4501 (45 HP tractor) 2WD which is already on sale in India. Local production will benefit both the companies and extend the tractors reach in the country.
Other tractor OEMs on the list that included VST Tillers, Preet, Indofarm, Captain, and ACE all noted positive growth in the past month while sales of Force and SDF dipped 7.8 percent and 42.1 percent respectively.