09 July, 2020
Indian Tractor industry bounce back in June’20 and records the highest sales in June ever. Domestic sales were 92,888 units in June’20 against the 75,859 units in June’19, registered 22.5% growth
.The surge in sales has been attributed to a robust rabi harvest, the timely arrival of the monsoon to aid Kharif sowing, and government sops such as direct benefit transfers.
Mahindra Tractors (Mahindra+ Swaraj) Records Second Highest June Sales Ever. Mahindra recorded 35844 unit sales in June 2020, whereas in June 2019, Mahindra domestic sales were 31879 units. This displays that Mahindra sales increased by 12.44%. But they lost their market share with 3.44% in this month. Meanwhile, its export shipments declined 42 percent during the month at 700 units against 1,215 units in the same month last year. The company tractor total sales for the month were at 36,544 units, up 10 percent from 33,094 units in June last year. In June’20, Mahindra Tractor loses a 3.44% market share.
TAFE Group ( Massey Ferguson + Eicher ) sales recorded 35.26% growth, which is quite impressive. In June 2019, TAFE sales were 14109 units, and in June 2020, it was recorded at 19084 units. That shows 4975 unit growth. Along with this, Tafe also gained ~2% market share this month.
Sonalika Tractors outpaces industry by 2.4X times and with a new record of ever highest domestic sales of 13,691, registering 55% growth against the industry growth of 23%. Sonalika domestic sales recorded 13691 units in June 2020, and it recorded 8827 units in June 2019. They also gained 3.10% market share during June’20.
Speaking on the performance, Mr. Raman Mittal, Executive Director, Sonalika Group, said, “Beginning of Q1 this year when the first-ever lockdown was announced. A company had decided to put all our energies with a positive effort not to de-grow in Q1. Today, the entire team is proud that we have not just achieved our goal but also have registered an overall growth of 5% in Q1, which is highest for the industry.
Escorts Tractor matched the overall industry growth of ~23% in June’20. Escorts sold 1975 units more in June 2020 in comparison to June 2019. In June 2020, Escorts domestic sales were 10623 units, and in June 2019, it was 8648 units.
Escorts Company said in a release, “We have seen unprecedented demand this month. The industry is expected to grow significantly backed by pent-up demand of the lockdown period, better farmer sentiment due to good monsoon prediction reflected in better than normal Kharif sowing, better rural cash flows owing to record crop output and crop prices, and reasonably good availability of retail finance. The industry growth is widespread, with positive growth in almost all markets, barring one or two. Our inventory levels, both with the company and with channel have been lowest ever. After necessary permissions, we were able to run our factories in multiple shifts to achieve production at about 90% of the capacity. Supply chain situation, though better than before, continues to remain volatile."
John Deere Tractor is continued to lose market share for the past few months. Still, John Deere is running sort of supply as they are unable to the mange supply chain in India. John Deere tractors domestic sales were dropped by 12.30% from 6683 units to 5861 units in June 2020. Due to lose in sale John Deere looses 2.50% market share in June’20.
New Holland Tractor Records Highest June Sales Ever. After a decline in April & May Month, New Holland Tractor recovered with 50% sales jump in June 2020. New Holland recorded 3845 unit tractor sales in June 2020, which is 49.73 % higher than tractor sales recorded in June 2019. New Holland also added a 0.75% market share in last month.
In June 2020 Kubota tractor sales recorded 1428 units, 50.16% higher than tractor sales recorded in June 2019. Kubota also added a 0.28% market share this month.
VST Tractor - 789 units tractor sales recorded in June 2020, and in June 2019, Vst domestic tractor sales recorded 644 units. This clearly shows a 22.52% increase in Vst domestic tractor sales.
Captain Tractor also gained 50.14% in its domestic sales this month. Captain tractor domestic sales recorded in June 2020 were 518 units and in June 2019 were 345 units. They also acquire a 0.10% market share.
Indo Farm Tractor domestic sales were 303 units in June 2020, and it was recorded 210 units in June 2019. That is a clear rise of 44.29% domestic tractor sales of Indo Farm Company.
Force Tractor domestic sales were 263 units in June’20, and it recorded 283 units in June’19, which indicates 7.07% of the drop in the tractor sales.
Ace Tractor increased 30.61% of domestic sales in this month, which is a good sign for the Ace Tractor Company. ACE tractor domestic sales were 256 units in June’20, and it recorded 196 units in June’19
Preet Tractor domestic tractor sales increased by 43.26% to 202 units in FY20 against 141 units in FY19.
Same Deutz Fahr Tractor Company faces a massive decrease in domestic tractor sales. Sales dropped by 51.73% in June 2020. SDF sold only 181 Tractor in June’20 against 375 Units sold in June’19.
Crisil has said that despite a 37% year-on-year decline in volumes in April and May, FY21 tractor sales will likely be just 1% below last fiscal’s numbers, in sharp contrast to a double-digit fall estimated for other vehicle sales.
It had earlier estimated an 11-13% fall in tractor sales in FY21.
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