Good monsoon, higher MSP pricing for Rabi crop and festive buying added spark to the October tractor sales. According to industry reports, 1,23,587 tractors were sold in October, up 7 percent compared to last October. Even when compared to the sales in September, the October sales are over 8 percent higher than the 1,13,687 tractors sold last month.
Mahindra & Mahindra’s domestic tractor sales were at 50539 units in October, up 11 percent from 45420 sold units during October 2021. Total tractor sales (including exports) during October 2022 came in at 51994 units up from 47017 tractors sold last month.
Commenting on the performance, Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra said, “The recent Government announcement of higher MSP for key Rabi crops, good moisture content in the soil, high reservoir levels and good progress in sowing for Rabi crops are all positives for continued good demand for tractors in coming months. In the exports market, we have sold 1455 tractors.”
Sonalika tractors clocked domestic sales of 16268 units this month compared to 14000 units in October 2021, up 16.20% maintaining the uptrend that kick started earlier this fiscal. Sales were also higher than what the company had registered in September -15,030 units.
Escorts clocked somestic sales of 13843 tractors up well over 8 percent from 12749 units in last October. This is also over 20 percent more than what the company sold last month – 11,384 tractors.
John Deere’s domestic tractor sales remained flat 11373 units compared to 11078 units during October 2021. However, month-on-month, there was a marked improvement in volumes compared to September when the company sold 8,889 tractors.
Industry experts believe that festive spending led to a significant uptick in sales and resulted in bookings for tractors and other farm equipment. A good monsoon also ensured that the positive momentum in the segment continued. Going forward, however rising interest rates, inflationary concerns and a significantly higher base are seen as key challenges in the second half of FY2023.