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Tractor Sales in India Tick up in Sept Despite Slowdown

Auto News - Published on Wed, 09 Oct 2019

Image Source: https://images.financialexpress.com
ET reported that despite the stubborn persistence of slowdown, the domestic tractor sector has managed to enter positive territory in September after being southbound for eight straight months in 2019. Driving the positive trend were increase in crop prices, strong monsoon and early kick-off of festive season. Though marginally, volumes of Mahindra and Mahindra, which holds more than 40% of the tractor industry market share, grew at about 0.3% at 36,046 units on YoY basis in September 2019. Another key player Escorts also posted 1.2% increase in volumes at 10,521 units last month.

Mr Rajesh Jejurikar, President - Farm Equipment Sector, Mahindra & Mahindra said that "The recent disruption caused by heavy rains has had an impact on short term demand. We believe that the fundamentals are in place for improved momentum over the coming months.”

Dealers ETAuto spoke with, highlighted that from a sales perspective festive period between September to November is crucial as almost half of the annual sales are recorded in these three months alone. Rahul Lunawat, one of the dealers of Mahindra Swaraj Tractors in Nasik district, Maharashtra said that because of early onset of the festive season he sold about 85 tractors last month which is 40 per cent higher than his normal monthly sales. He added that "It is for the first time that Navaratri and Ganesh Chaturthi came in the same month of September that resulted in hike in billings, pointing out that remaining days of Navaratri and Diwali will make October another positive month for sales.”

Another dealer of Sangli district mentioned that increase in crop prices and financing support from non-banking financial companies helped a lot in restoring positive sentiment. Mr Rajendra Gurav, Managing Partner at Samarth Tractors (Sonalika) said that "With more than expected spike in onion prices and healthy rainfall, almost every dealer is now expecting to sell 10-15 per cent more in October this year as compared to same month in 2018. Additionally, we are getting good support from the NBFCs as well.”

Source :

Posted By : Mohan Sharma on Wed, 09 Oct 2019
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