A great sign of reviving rural demand, Domestic tractor sales were booming By 21.32% in February 2020.
M&M’s farm equipment sector (FES) said its domestic sales in February 2020 stood at 21,877 units, up 21% from the year-ago month. Exports, though, dropped 22% to 683 units, taking total tractor sales during the month to 22,561 units. This is a growth of 19% from February 2019.
Rajesh Jejurikar, president, FES, M&M said, “the tractor demand trend is expected to strengthen on the back of a robust rabi output and the prevailing crop prices. Going forward, the increase in rural and agri- spending on core schemes by the government should augur well for the industry.”
TAFE looses almost 3% market share in Feb 20. Although Tafe’s sales increased by 1.03% in Indian market. In February 2020 sales were recorded 8419 units and in February 2019 sales were recorded 8333 units. Only 86 units of sales were increased in 2020 compared to 2019.
Sonalika Tractor’s performed outstanding and managed to grab his position of no. 3 in last month. Sonalika Tractor sales jump by 30.23%. As per the data Sonalika sold 8055 units in February 2020 on the other hand in February 2019 it was recorded 6185 units. With this high jump in sales sonalika added 1% of market share against Feb’19.
Escorts said its agri-machinery segment sold 8,601 tractors, registering a growth of 18.8%. Domestic tractor sales grew 16.35% to 8,049 units and exports rose to 552 tractors from 322.
After the Sky Jump of 46.4 percent in Jan’20. John Deere Tractor sales now touched to moon. In February 2020 John Deere Tractor sales was 6220 units whereas in February 2019 numbers was 3735 units. This clearly shows 66.53% boom in the domestic sales.
New Holland Tractor displays a 204 units rise in tractor domestic sales. As in February’20 sales were 2023 units and in February’19 sales were 1819 units so it is an 11.21% growth.
Kubota Tractors recorded 24.63% growth in Feb 2020. In Feb 2019 sales were 800 units and in Feb 2020 sales were 997 units.
SDF Tractor sales decreased by 39.81% to 211 units in February 2020 compared to 295 in February 2019.
Captain Tractor sales increased by 114% to 409 units in February 2020 compared to 191 in February 2019.
Force Motors recorded a growth of 24.73% tractor sales. Force Tractor sold 358 tractors in Feb’ 20
VST Shakti tractors In Feb 2020 VST Shakti tractor sales were declined by 6.19% in comparison to Feb 2019. VST Shakti sold 500 tractors in Feb’20 against 533 in Feb’19.
ACE Tractors Sales increased by 131% in Feb 2020. ACE sold 194 tractors in Feb’20 against 84 in Feb’19.
Preet tractor Sales increased to 150 units as compared to 130 units sold in Feb’20.
Indo Farm Equipment Sales rise by 64.82% in Feb 2020 in comparison to Feb 2019. Indofarm sales were 239 units in Feb 2020 instead of 145 in Feb 2019.
Tractor manufacturers have no basis to be worried about the new release.
Bharat Stage-VI emission rule is creating damages in the domestic auto demand-supply cycle. On the other hand, it is estimated that present Bharat Trem-VI emission rule for tractors effect least on sales which will be implemented from October.
For sure, the jump cost in high-end tractors is expected to be a high 10-15% above the present price. “The go through of the additional cost (associated to the technological changes) to the farmers that show to be a challenge, given the cost-conscious nature of the farming association," said Rohan Gupta (assistant vice president).
The excessive cost of producing a will, therefore, has to be occupying at least slightly by the original equipment manufacturers (OEMs). This could restrain benefits in high-end tractors.
Even then, more than 50hp tractors are a minute part of the general portfolio mix, and will not harm profits. Besides, the benefits of relatively large tractor manufacturers have been blooming, even during heavy times as seen in the last 10 months. Both M&M and Escorts have registered Ebit (earnings before interest and tax) margins in double-figure (12-15%) in the last few quarters. The farm equipment segment did well to balance the suffering tip in other segments.
Be that as it may, grown compliance of Bharat Trem-IV emission norms is anticipated only by October 2023. The phased implementation is likely to seedless suffering from cost-push, technological skill and demand recoil.
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