Posted On - 09 Feb 2021
The Indian Tractor industry was an exceptional performer during FY2021. The agriculture sector in India was not impacted hugely by the pandemic, and as such, the tractor industry witnessed strong sales figures, much ahead of expectations. The new year too has started with a bang. A total of 78,343 tractors were sold in the Indian market in Jan’2021, registering a YoY growth of approximately 46% for the Indian tractor industry.
Several factors contributed to the significant spike in sales. Some of these factors include; easy availability of finance, better monsoons, increased MSPs and market rates realization, restoration of channel inventory, higher Kharif and Rabi output, increased demand, positive macroeconomic factors and strong rural cash flows.
The OEM wise wholesale domestic tractor sales figures for Jan’2021 are as shown in the table above :
The domestic tractor sales for Mahindra & Mahindra Farm Equipment Sector (FES) increased by a whopping 50.31%, from 22,329 units in Jan '20 to 33,562 units in Jan '21. It's domestic market share also increased from 41.82% to 42.84%.
Commenting on the performance, Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd. said, “We have sold 33,562 tractors in the domestic market during January 2021 with a growth of 50% over last year. Tractor demand continues to be strong with expansion in Rabi acreage, very high reservoir levels and higher liquidity in the hands of farmers with timely Kharif procurement.
Demand is expected to remain robust on account of these factors and higher allocations which are expected for Agriculture in the upcoming Budget in line with Government’s continued focus on Agriculture & Rural sector. In the exports market, we have sold 1,216 tractors, a growth of 55% over last year.
Tractors and Farm Equipment (TAFE) Group reported significant growth of 51.10% in domestic tractor sales, with 12,366 units sold in Jan '21 against 8,184 units during the same month last year. The company's market share increased slightly from 15.33% to 15.78%.
Escorts' domestic tractor sales grew by an impressive 45.59%, with sales of 8,510 units against 5,845 units sold during Jan '20. However, the company's domestic market share saw a marginal decrease from 10.95% to 10.86%.
Sonalika Tractors reported a decent growth of 46% in domestic tractor sales. The company recorded its highest ever overall January sales figures, with 8,154 units sold in Jan ’21 against 5,585 units in Jan ’20. However, the company saw a marginal decrease in its total domestic market share, from 10.46% to 10.41%.
Sharing his thoughts on the company’s extraordinary approach, Mr. Raman Mittal, Executive Director, Sonalika Group, said, “Sonalika is committed to develop cutting edge technologies for tractors and implements in a responsible way. While driving farm mechanisation, our aim is to raise increase customer productivity significantly without increasing total cost of product ownership. Banking on the strong platform built even during the pandemic, we have surged ahead further with our best ever overall January sales performance of 10,158 tractors. We have sold 8,154 tractors in domestic market and clocked 46% growth over January’20 sales of 5,585 tractors. Such a dynamic performance is powered by our heavy duty product portfolio which now includes the versatile Sikander DLX Potato Special series especially designed for potato farmers. The special edition series is yet another reflection of the company’s commitment to be a farmer-centric brand and “Leading Agri Evolution’ across the world.”
John Deere recorded domestic tractor sales of 8,089 units in Jan '21, up from 6,926 units in Jan '20, registering a growth of 16.79%. However, the company's market share decreased considerably from 12.97% to 10.33%. John Deere lost highest 2.65% Market share in Jan’21.
New Holland registered an astounding growth of 108.67% in domestic sales, from 1,557 units in Jan '20 to 3,249 units in Jan '21. The company's market share also increased from 2.92% to 4.15%. New Holland gained highest 1.23% market share in Jan’21.
Kubota Tractors managed to put up a commendable show and registered a 56.62% growth in domestic tractor sales, from 846 units in Jan ’20 to 1,325 units in Jan ’21. Its market share increased marginally from 1.58% to 1.69%.
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