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Tractor Sales in India See Sharpest Decline in August

Auto News - Published on Wed, 18 Sep 2019

Image Source: https://www.phnompenhpost.com
Despite witnessing above normal rainfall in the mid monsoon months (July to August), the rural economy is showing no signs of resurgence. This is quite evident from the August tractor sales crashed by 16. 5%, the worst ever decline in the past eight months of the calendar year 2019. According to the latest data by Tractors and Mechanisation Association, In August 2019, tractor sales stood at 37, 050 units against 44,390 units in the same month last year.

Experts pointed out that the late surge in southwest monsoon followed by floods in several states delayed the Kharif sowing of food grains by one month. States like Gujarat and Telangana reported decline in pulses sowing this year so far.

According to a recent agriculture report by Crisil Research, additionally, the delayed onset of monsoon has already led to a 6.4% decline in paddy sowing as on August 22.

All these factors further downgraded the farm income which was already reeling under pressure due to worst performance of pre-monsoon rains. Rural incomes were impacted towards the second half of last fiscal because crop production was flat after two years of 5 to 6% growth, and farm profitability declined due to weak pricing, Crisil Research said in another report on tractor market.

Company wise, market leader Mahindra and Mahindra which owns 40% of the total tractor sales reported a 17% decline in August 2019 at 14,817 units as compared to 17,785 units in the same month a year ago.

Another key player Escorts' tractor volume also fell by 19% at 3,763 units last month as compared to 4,674 units in August 2018.

Source :

Posted By : Mohan Sharma on Wed, 18 Sep 2019
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