05 August, 2020
Farm Equipment and engineering major Escorts Ltd on Saturday reported 9.5 percent increase in tractor sales at 5,322 units in July.
The company had sold a total of 4,860 units in the same month last year, Escorts Ltd said in a regulatory filing.
Domestic tractor sales in July 2020 at 4,953 tractors registering a growth of 9.9 percent against 4,505 tractors in July 2019.
During the month of July, the company faced some supply chain challenges, especially with a few suppliers of proprietary items, Escorts said in a release.
"As a result, we could operate only at about 50 percent of our capacity, resulting in unfulfilled demand. The situation has been continuously easing in the last few days of July, and hence we expect to go back to full capacity anytime up to mid-August 2020," highlighted Escorts.
The company further said that the supply side situation may continue to be dynamic for another couple of months.
"Our inventory levels, both with the company and with channel, continues to be at very low levels. We are optimistic for the coming months as the rural sentiments continue to remain positive, led by timely and widespread monsoon, higher sowing of Kharif crop and adequate availability of retail finance,” added the company.
Besides, company's export tractor sales in July 2020 at 369 tractors registering a growth of 3.9 percent against 355 tractors sold in July 2019.
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