Tractor sales dip this festival season

Owing to erratic monsoon, tractor sales saw a 0.5 per cent dip during the 42 days festival period.

According to vehicle retail data by the Federation of Automobile Dealers Associations (FADA), 86,572 tractors were sold during the festival period in 2023 as compared to 86,951 sold during the same period in 2022.

While the dip in sales of tractors continued during the season, the end of the festival period registered an uptick in sales.

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“Tractors saw an 8.3 per cent decrease in sales during Navratri, made a remarkable recovery, ending the festival period with only a 0.5 per cent decrease. This highlights the robust purchasing power in rural India,” said Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA).

Original Equipment Manufacturers (OEMs) are introducing new models of tractors into the market to leverage the growing demand, according to industry experts. 

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While domestic tractor sales saw a growth of 12.2 per cent in FY23 owing to adequate water reservoir levels and normal monsoons, the decline in sales was noticed in Q1 FY24 by two per cent.

“The domestic tractor industry growth is expected to moderate to three to five per cent in FY24, on the back of the high base of last year and increasing commercial demand for tractors with the government’s infrastructure push and higher construction activity. However, the demand from the agriculture segment is expected to remain subdued due to below-normal and erratic monsoons across the country affecting food crops and rural income. The deficit rainfall in eastern and southern India, as well as the flooding in certain parts of north India, could further accentuate inflationary pressures thereby impacting tractor sales in the near term,” said Tanvi Shah, Director of CareEdge Advisory & Research.

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