VST Tractors and Tillers Ltd. India’s largest power tiller manufacturer, reported 23% yoy volume growth in March 2018. It sold a total of 7,399 units in March 2018 against 6,023 units in March 2017.
Volumes for its tractor segment were up 29% yoy for the month. Against 1,398 tractors in March 2017, VSTTL sold 1,808 tractors in March 2018. Power tiller volumes were up 21% yoy in March 2018 at 5,591 units vs. 4,625 units in March 2017. For the full year FY18, VSTTL saw 18% yoy growth.
The volume growth reported by VSTTL in March 2018 (up 29% yoy) was better than its 12 month average growth of 21% yoy. However, peers saw stronger growth in March 2018 viz. Escorts (up 67% yoy) and M&M’s Farm Equipment Division (up 46% yoy). Tractor sales have been on an upswing due to two consecutive years of healthy monsoons, low penetration of tractors in India (20 tractors per 1,000 hectares against 500 per 1,000 hectares for Japan) and growing use of tractors for non-agriculture use (currently at 20%).