Hemant Sikka Sees Positive Growth in Tractors This Year
Sikka said, the company has been raising prices to offset the impact of rising commodity prices, which are still higher than last year but are beginning to soften. In FY22, they raised prices three times, and in FY23, the first was in mid-April, followed by one in early July.
The industry is on a good growth path, and the progress of the monsoon and Kharif crop is expected to boost sales further, says Hemant Sikka of M&M, president Farm Equipment Sector. So far in FY23, quarter one has been a good start for tractor sales, with Mahindra Tractors outperforming industry growth by 18.3 percent.
June sales were hampered by monsoon delays, but they are expected to catch up in the coming months, as rural sentiment is expected to be favourable for sales growth.
On the commodity front, Sikka states that the company has been raising prices to offset the impact of rising commodity prices, which are still higher than last year but are beginning to soften. In FY22, they raised prices three times, and in FY23, the first was in mid-April, followed by one in early July.
Overall, Sikka believes that it will take another 1-2 quarters for growth to return to pre-Covid levels. Highlighting some of the factors driving industry growth, he says that sowing is going very well, Rabi output was very profitable for farmers, this is the fourth year in a row that monsoon is expected to be normal, and he expects Kharif output to be good in the future.
On the subject of electrification in the tractor industry, Sikka believes that EV Tractors have a few more years ahead of them and that tractor electrification will occur later in the EV Cycle.
About Mahindra Tractors:
Mahindra has been India's undisputed No. 1 tractor brand and the world's largest tractor manufacturer by volume for over three decades. Mahindra Tractors is an integral part of the Farm Division, which is the flagship unit of Mahindra's Farm Equipment Sector and is part of the $19.4 billion Mahindra Group.
With a presence in over 40 countries, Mahindra has capitalized on its quality as the world's only tractor brand to win both the Deming Award and the Japanese Quality Medal. Mahindra has the most extensive tractor line-up and is synonymous with India's tractor industry. Mahindra became the first Indian tractor brand to sell 3 million tractors in March 2019.
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