Tractor sales are expected to grow in the range of 10-12 per cent this fiscal on the back of factors like enhanced agriculture cash flows and healthy haulage demand, according to rating agency Icra.
The domestic tractor industry has grown by 22 per cent in April-August of the current fiscal as compared to the same period of previous financial year.
The volume growth has been relatively broad based, with healthy offtake recorded across a majority of states even as the monsoon distribution remained uneven, the agency said.
"Icra expects the tractor volume growth for the fiscal to be at 10-12 per cent as the base effect catches up," its Vice President and Sector Head, Corporate Ratings Anupama Arora said.
The demand drivers for the industry continue to remain intact, which has aided robust volume growth in the fiscal till date, it added.
"A combination of factors such as enhanced agri cash flows, healthy haulage demand and adequate financing availability remain the key demand drivers; government support programmes have also lent support to the farm sentiments and aided the industry volumes," Icra said.