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In an indication of steady demand on the back of robust farm sentiments, domestic tractor sales have reported positive growth both year-on-year and sequential basis. Exports exhibited improvements on a sequential basis.
Total domestic tractor volumes increased by 2 per cent at 83,267 units in May 2023. However, sales increased by 5 per cent when compared with April 2023 volumes of 79,288 units, according to data from Tractor & Mechanization Association.
Industry representatives stated that domestic tractor wholesales remained at healthy levels in May, with advance estimates indicating a healthy rabi harvest.
Escorts Kubota reported a positive growth of 13.5 per cent in tractor sales at 8,704 units last month. “Overall, the macroeconomic factors and farmer sentiments remain positive, resulting in a positive sales trend across most geographies, said the company.
Also read: Tractor industry to grow in low single digits: Mahindra & Mahindra
Mahindra & Mahindra reported a marginal YoY year-on-year decline of 3 per cent in its domestic tractor sales at 33,113 units in May this year. However, the company is positive about the demand scenario in the near term.
Overall, the tractor industry expects the current momentum to continue in the near-term led by normal rainfall forecast, adequate reservoir levels, better liquidity, and consumer credit availability.
Total tractor production was lower at 79,928 units in May 2023 when compared with 103,563 units in May 2022.
Exports have shown some improvements in the month of May, recording positive growth of 9 per cent over April 2023 volumes. However, May’s number was down 28 per cent when compared with exports of 11,582 units in May 2022. H1 of FY23 was a boom period for tractor exports from India.
Domestic tractor volumes are expected to moderate this fiscal on a high base of FY23. Tractor OEMs have projected a single-digit growth in sales aided by favourable factors. Industry volumes grew 12% in FY23, touching an all-time high of 9.45 lakh units.
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