In a sign of tractors getting back to the positive growth lane, Escorts has reported a 12.5% increase in its June 2021 tractor sales at 11,956 units as compared to 10,623 units in June 2020 and 6,158 units in May 2021.
The on-ground situation eased in June as the second wave of pandemic started waning. Most of the dealerships, except in a few pockets, were able to remain open and serve customers, though for limited hours of operation. Our inventory, both with the company and with the channel, continues to be at normal levels, said a company statement.
Sales figures are as follows:
|FY'22||FY'21||% Change||FY'22||FY'21||% Change|
Industry analysts also pointed out that enquiry levels have improved faster in the tractor segment and the momentum is continuing.
“With the rural fundamentals in place, demand from agriculture remains strong. Commercial demand is picking up slowly with the opening up of the economy. Tractor inventory in the system is about 30 days,” said an analyst at Motilal Oswal Financial Services.
“We remain optimistic for the rest of the fiscal year, as timely and expected above-normal monsoon, increase in MSP prices, and record direct procurement by the government is leading to a positive build-up of farmer sentiments. The commercial activity also is expected to gain further momentum in the ensuing months. The enhanced pace of mass vaccinations is further going to help the rural sector,” said Escorts.
Inflation however continues unabated beyond industry expectations. “While we are trying to offset a part of this through internal cost control measures, we have announced a significant price hike effective July 1, 2021 on all tractors. This is our third consecutive price hike in the last nine months. Despite this, inflation continues to put pressure on the margins,” it added.
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