18 June, 2020
Tractor sales beat sales of cars, SUVs in May. Perhaps for the first time, monthly tractor sales surpassed the sales of cars and SUVs in India.
As the impact of COVID-19 was not felt in rural areas as severely as in urban areas, sales of tractors were not impacted to the same extent as on PVs. M&M clocked a growth of 2 per cent in tractors sales in May in the domestic market while Escorts reported a fall of under 1 per cent in May to 6,454 units. As in the above report, we observed that domestic tractor brands like Mahindra, Sonalika etc. recorded growth in their tractor sales report this month. On the other hand, foreign tractor brand’s sales report drastically declined because domestic manufacturers managed its resources and manpower well in this pandemic situation.
Domestic Mahindra tractor sales recorded 24017 units in May 2020 as compared to May 2019. That is a good sign for the company.
In May 2020, TAFE regained its market share by 3.79%. After continuous drops for about 6 months, TAFE retains its palace in the market. In May 2020, TAFE sales recorded 14070 units and in May 2019 it was recorded 11320 units. This clearly shows 2750 units sales growth. TAFE sales increase by
Sonalika tractor sales boom out this month. Sonalika recorded 7640 units in May 2020 against 6515 units in May 2019. Which shows 17.27% growth and it also manages to grab 1.43% of market share.
Escorts domestic sales decline by 0.52% and the company also loses its market share by 0.49%. Escorts registered 6454 units sales in May 2020.
John Deere tractor hit the biggest drop in this month. Due to limited manufacturing operation & broken supply chain in lockdown John Deere Tractor unable to meet upto farmers demand. In May 2020, sales were 3411 units and in May 2019 John Deere tractor sales registered were 4951 units.
New Holland Tractor Sales were 2447 units in May 2020 and in May 2019 it was registered as 2554 units. This distinctly shows a decline of 4.19% in sales. Along with this, New Holland Tractor also loses market share by 0.35%.
VST Shakti’s domestic tractor sales were booming in May 2020. It recorded 98 units more in May 2020 as compared to May 2019. Vst tractors also secured its market share by 0.13% in the tractor industry.
Kubota Tractors - In this month Kubota registered a drastic drop in its domestic tractor sales. In May 2019, Kubota tractor domestic sales were 90 units and it was recorded 563 units in May 2020. With sales drop, it also recorded a loss in market share by 0.62%.
Captain Tractor increases 43.82% of domestic sales this month which are the great sign for the company. Captain tractors also gain 0.12% of market share this month.
Force tractor sales registered this month is 254 units which is increased by 25.74% as compared to May 2019.
In May 2019, Indo Farm tractor sales were 236 units and in May 2020 it was 243 units. This clearly shows 2.97% growth in the domestic sales of Indo Farm tractors.
Ace tractor domestic sales also increased in May 2020 by 2.75% as compared to May 2019.
Same Deutz Fahr tractor sales recorded a drastic decline this month also. The company also faced a 0.48% market loss in May 2020.
Preet Tractor registered a 47 units growth in domestic tractor sales. As in May 2020 sales were 148 units and in May 2019 sales were 101 units so it is a 46.53% growth.
Pawan Goenka, President, Mahindra & Mahindra said in an interview to CNBC-TV18. So the tractor industry right now is looking very good and it is not just tractor but also everything else that goes into agri input – that is crop care, fertiliser, seeds, everything else is looking very positive and that has been a bright sign for the economy though agri represents only about 13-14 percent of gross domestic product (GDP) but it does take care of income for a large number of people in India. So that is a bright sign for us.".
Speaking on the performance, Mr. Raman Mittal, Executive Director, Sonalika Group, said, “For the farmers, the real currency is their crops. Tractors play a very important role in the farmer’s life to enhance his productivity from the given set of his land. Farmers are majorly oriented towards application-based farming like puddling, mulching, baler application, orchards, horticulture etc. Paddy being the major Kharif crop, we are seeing a demand rise for customized tractors which will be able to address these specialized needs. Along with the demand for tractors, the demand for specialised implements is also expected to go up.
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