October was a month of bountiful Sales for the tractor industry, which recorded its highest-ever domestic sales. It is an indication that rural demand has begun to improve as consumer confidence has returned as a result of anticipation of a big harvest and the availability of water by the farming community.
Raman Mittal, Executive Director of Sonalika Tractors said that the festival season is often when farmers improve their tractors in order to enhance production and income and the holidays did boost sales, and in October, tractor sales reached an all-time high of 1,15,615 units.
Ravindra Kundu, Executive Director, Cholamandalam Investment & Finance Company Ltd also told the reporters that “October has been good for the tractor industry and that month saw tractor disbursement touch highest,”
The October sales were marginally higher than 1,15,155 units sold in the same month last year.
But compared with September 2021 sales of 92,465 units, in October the total tractor production stood at 90,395 units and was higher by 25 per cent, according to the data provided by the Tractor & Mechanisation Association (TMA).
For the April-October 2021 period, the total domestic tractor sales stood at 5,56,447 units compared to 5,16,762 units the last year, registering an increase of about 8 per cent.
“High reservoir levels, the expectation of a good Kharif harvest, coupled with good preparations for the rabi crop will boost positive sentiments and drive demand in the coming months,” said Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra.
The industry is sticking to its guidance of single-digit growth for this fiscal after growing at 27 per cent in FY21.
“Rising adoption of farm mechanisation coupled with the introduction of precision farming to increase productivity has been significantly driving the Indian tractors market,’’ says Mittal.
Simultaneously, tractor exports continued to be strong with dispatches rising 75 per cent at 74,491 units during the April-October period.
