Tractor volumes slide in July on high base, dip in Kharif sowing

Hemant Sikka, president, farm equipment sector, Mahindra said, “After a very robust Q1, wherein we achieved volume growth of 18%, July witnessed normalisation in volumes.”

Tractor volumes slide in July on high base, dip in Kharif sowing

Domestic tractor volumes remained muted in July owing to factors like a high base and lower than expected rainfall in several states, including UP and Bihar, leading to relatively less sowing in the Kharif season. Mahindra & Mahindra saw a decline of 15.85% y-o-y in its tractor despatches in the domestic market to 21,684 units, while those of Escorts Kubota dropped 22.31% y-o-y to 4,704 units.

“We have sold 21,684 tractors in the domestic market during July 2022. After a very robust Q1, wherein we achieved volume growth of 18%, July witnessed normalisation in volumes. July is traditionally a lean month as the land preparation phase, wherein a tractor finds the highest utility, gets over and farmers start sowing their crops,” Hemant Sikka, president, farm equipment sector, Mahindra. He said overall rainfall has been higher than normal barring a few eastern states.

“With these states being the key paddy producing markets, recovery in rainfall is crucial.” Festive season falling in the later half of August and sufficient rainfalls across most of the geographies will shape up the industry in the upcoming months, Sikka observed.

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