The tractor sales were the poster boys of the FY2022 demand revival post Covid. However, in FY2023 they have had a relatively muted showing, though most manufacturers showcased reasonably encouraging performance
M&M reports steady sales
M&M’s Farm Equipment Sector (FES) clocked a 20 per cent growth in domestic tractor sales in March to 33,622 units, as against 28,112 units sold during March 2022. For the full year, M&M sold 389,531 tractors, up 16 per cent from 337,052.
Tractor exports for the full year also increased slightly to 18,014 from 17,646 tractors sold in FY2022. Exports and domestic sales combined, the company clocked its highest ever annual sales, crossing the 4 lakh units mark to 407,545 tractors.
Commenting on the performance, Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra said, “Increase in crop output, mandi prices staying firm, Government support for increase in MSP for major crops and increase in wages under MGNREGA scheme will help improve the financial security of rural households and boost tractor demand in the coming months.”
Exports drive ITL’s FY2023 sales
International Tractors has also concluded its FY2023 journey with a steady sales report. The companyt clocked biggest ever annual sales mark of 151,160 tractors accounting for 14.1 per cent market share and includes 11 per cent overall growth. Raman Mittal, Joint Managing Director, International Tractors said, “The new landmark achievement has been driven by multiple initiatives – our precise focus on product innovation, pioneering to reveal tractor prices on website that raised transparency in tractor industry, easy credit availability to farmers through our NBFC, on-boarding 3000+ youth from technical institutes like ITI, 3×2 service promise, digitalisation and on-ground connect with farmers.”
Unseasonal rains impact Escorts sales
Escorts Kubota saw a relatively muted performance. Domestic tractor sales in March were flat at 9,601 tractors compared to 9,483 tractors sold in March 2022. Despite the festive season in March, retail sales were impacted due to unseasonal rainfall and crop damage in certain regions. However, with continued support from the government, better crop prices, improved finance availability and good water reservoir levels, the company “expect similar demand momentum to continue across geographies in the coming quarter,” the company elaborated in a regulatory filing.
