27 January, 2020 Total Views 10096
Domestic tractor sales increased by 2.4% y-o-y in December 2019 on account of a low base and better monsoon, although lower commercial activity kept it from growing further. Exports declined by 13.1%.
Mahindra Tractor Domestic sales in December 2019 were at 17,213 units, as against 16,510 units during December 2018. Total tractor sales (Domestic + Exports) during December 2019 were at 17,990 units, as against 17,404 units for the same period last year. Exports for the month stood at 777 units.
Commenting on the performance, Rajesh Jejurikar, President - Farm Equipment Sector, Mahindra & Mahindra Ltd. said, "We have sold 17,213 tractors in the domestic market during December 2019 with a growth of 4% over last year. Tractor demand looks positive in the near term led by the expectation of a better Rabi output, supported by crop prices and government thrust on irrigation, rural infra & Agri sector. In the exports market, we have sold 777 tractors".
TAFE group reported a 4.7 per cent decline in Tractor sales for December 2019 as compared to the same period last year, from 7,296 units to 6,952 units. TAFE group lost the highest 1.22 per cent market share in Dec’19 to competitors.
As we earlier told you FY 2020 is not so well for Tafe group. Cumulatively, the company sold 98,183 units of tractors in domestic market during April-December 2019 period against 1,16,747 last year, down by 15.9 per cent and lost 1.17 per cent market share.
According to ICRA, weak rural sentiment and uneven monsoon may impact kharif crop output and farm incomes going forward, which will result in a moderate decline in domestic volumes. Data from Industry apex body Tractor Manufacturers’ Association showed tractor sales fell from 8,40,804 units in January-November 2018 to 7,23,197 units in the same period this year. During the April-December period of FY20, tractor sales fell by nearly 10.3 per cent on year.
Sonalika Tractors were at No.3 on the list of best sellers in Dec’19 despite a significant reduction in sales. Company sold 4,963 tractors in Dec’19. Sonalika maintained 11.59 per cent market share in Dec month and 11.53 per cent during April-December 2019. Sonalika’s MS in FY’20 dipped by 0.42 per cent.
John Deere performed extremely well and become no. 4 player in Dec’19, sales increased by 13.1 per cent in compare to Dec’18. As tractor sales in Telangana and South India is started recovering now, John Deere is growing towards 10 percent market share in India. John Deere sold 4,695 units of tractors in compare of 4,151 of last year Dec Month.
So far FY2020 (Apr-Mar) was so well spent for John Deere as they sold Cumulatively, 51,423 units of tractors in domestic market during April-December 2019 period against 54,076 last year, down by 4.9 per cent but gained 0.52 per cent market share in domestic market.
Escorts sales of dipped by 9.64 percent in the past month. Sales which had stood at 4,212 units in Dec 2018 dipped to 3,806 in Dec 2019 . Escorts managed to have 8.89 percent market share in Dec’19. Which decreased by 1.19 percent yoy.
New Holland Tractors registered highest growth among all in Dec’19, sales increased by 50.3 percent in compare to last year. Sales which had stood at 1,569 units in Dec 2018 jumped to 2,358 last month. New Holland Tractor registered 1.75 percent growth in Market share.
Kubota Tractors sales surged to 1,233 units, up 47.7 percent as compared to 835 units sold in Dec 2018. Cumulatively Kubota registered 24.3 percent growth which is highest in growth during April-Dec 2019 .
Same Deutz Fahr Tractors sales decreased by 31.5% to 285 units in Dec’19 against 416 units in December 2018.
V.S.T. Tillers, Tractor sales also tumbled 23.6% to 350 units in Dec’19 against 458 units in December 2018.
Captain Tractor’s sales surged by 40.4% to 271 units in Dec’19 against 193 units in December 2018.
Force Tractors sales decreased by 27.9% to 217 units in Dec’19 against 301 units in Dec 2018.
Indofarm sales decreased by 6.4% to 191 units in Dec’19 against 204 units in December 2018.
Ace Tractors sales decreased by 65.8% to 146 units in Dec’19 against 427 units in December 2018.
Preet Tractors sales decreased to 126 units, down by 26.7 percent as compared to 172 units sold in Dec 2018.
“Overall, we expect tractor volumes to contact by 7-9 per cent in FY20, with moderation in decline in the second half of the ongoing fiscal. In H1, the domestic industry volumes declined by 12.2 per cent year,” ICRA noted.
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