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Indian tractor industry posts 22% volume growth - ICRA

Auto News - Published on Thu, 11 Oct 2018

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Times Of India reported that continuing on robust volume growth over the past two fiscals, the domestic tractor industry has grown in the current fiscal as well, witnessing an expansion of 22% in April-August FY2018 (Y-o-Y basis). The volume growth has been relatively broad based, with healthy growth recorded across a majority of states even as the monsoon distribution remained uneven. Mr Anupama Arora, vice-president and sector head, corporate ratings, ICRA, said that “Notwithstanding the strong volume growth during April- August 2018, ICRA expects the tractor volume growth for the fiscal to be at 10-12% as the base effect catches up.” She added that “The demand drivers for the industry continue to remain intact, which has aided robust volume growth in the fiscal till date. A combination of factors such as enhanced agri cash flows, healthy haulage demand and adequate financing availability remain the key demand drivers; government support programmes have also lent support to the farm sentiments and aided the industry volumes.”

The IMD’s second stage forecast anticipated the monsoon precipitation in the southwest monsoon season to be 97% (+/- 4%) of the long period average (LPA). After an early onset of monsoon and above-normal volume of precipitation in in the first two weeks, precipitation remained weak for a majority of the monsoon season with the season concluding below normal at 91% of LPA.

Additionally, a wide variation in precipitation exists across regions, with the eastern and north-eastern regions receiving deficient rainfall. Even as the relatively higher irrigation penetration levels in a majority of the northwest region would help limit any adverse impact of the deficit rainfall, weak monsoon performance in Maharashtra and Rajasthan remains area of concern, with irrigation intensity in these states remaining low.

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Posted By : Joykumar Irom on Thu, 11 Oct 2018
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