Financial Daily from THE HINDU group of publications
Thursday, Sep 18, 2003
Financial Daily from THE HINDU group of publications Thursday, Sep 18, 2003 |
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Industry & Economy
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HCV/LCV/Tractors Tractor sales down 17.8 pc in Q1 Our Bureau
New Delhi , Sept. 17 LAST year's poor monsoons continued its negative impact on the domestic tractor industry, with industry sales falling 17.8 per cent during April-June 2003. Companies whose sales were hit adversely in the period included Mahindra and Mahindra, Punjab Tractors, Eicher, Tractors and Farm Equipment (TAFE) and Sonalika. Sales declined to 36,927 units from 44,972 units in the corresponding quarter last fiscal, data released by the Tractor Manufacturers Association (TMA) for 11 tractor-making companies showed. The decline was apparent in all the horsepower segments, including the highest-selling 31-40 HP segment which suffered a 26.3 per cent drop at 18,672 units. Sales in the entry-level 21-30 HP segment went down by 13.4 per cent to 8,352 units but was up marginally in the 41-50 HP segment. Production level of the industry was also down by 9.1 per cent at 36,816 units. Sales of Mahindra and Mahindra, dipped by 32 per cent to 10,013 units, while that of the recently divested Punjab Tractors witnessed a 24.3 per cent drop to 5,296 units. However, Escorts and L&T-John Deere bucked the trend by clocking 69.4 and 134.7 per cent rise in sales at 6,147 and 1,479 units. The industry has been plagued by high inventory levels and the practice of advance selling, which have affected overall profitability. However, steps taken by TMA this year to free the industry of both these ills are expected to take the sector to profitable growth in the next couple of years. Further, industry officials said, the good monsoons have already lifted market sentiments and will have a positive impact during the coming October season.
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