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September 2022 proved to be a strong month for the domestic tractor industry as tractor sales more than doubled month-on-month basis and registered 23 per cent growth year-on-year basis despite the high-base effect. Total tractor production during the month was the highest ever in this calendar year.
This is the first month that domestic tractor sales have recorded a year-on-year growth after April 2022.
Positive sales
Total domestic tractor volumes stood at 113,686 units in September 2022 as compared to 52,691 units in August 2022. When compared with volumes of 92,465 units in September 2021, sales grew 23 per cent this September. Also, last month’s volumes were the second-highest monthly number in the past 12 months, according to the data provided by Tractor & Mechanization Association (TMA).
The strong YoY growth of 23 per cent is attributed to the inventory build-up before the festive season and positive farmer sentiments. Tractor makers are upbeat about the festive season sales.
Top tractor maker, Mahindra & Mahindra (M&M) reported a 21 per cent increase in its September volumes at 47,100 units, while Sonalika Tractors reported its highest-ever monthly sales of 18,619 units. Escorts Kubota’s tractor sales this September grew 43 per cent at 11,384 units.
Hemant Sikka, President-Farm Equipment Sector, M&M said the company recorded its highest-ever monthly sales in September 2022, supported by strong demand owing to the festive boost, which the company expects to continue this month as well.
For H1FY23, total domestic tractor volumes have grown by 10 per cent at 4.87 lakh units as compared to 4.41 lakh units recorded during April-September 2021 period.
Total tractor production during September 2022 stood at 104,698 units as compared to 98,745 units in August 2022 and 100,160 units in September 2021.
Exports
Tractor exports for September 2022 stood at 11,320 units as compared to 12,690 units in September 2021 and 12,118 units in August 2022. For the April-September 2022 period, exports grew 13 per cent to 70,420 units.
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Tractor exports hit historic high in June; production and sales too soar
For the 13th month in a row, tractor exports stay above 10,000 levels; Q1 exports grew 32%Industry analysts say tractor exports are expected to rise 8-10 per cent this fiscal. Demand for Indian tractors has been high in Bangladesh, the United States, Mexico, and European Union. Tractor makers are increasingly focussing on growing their exports and have been rolling out products in the category of 90-120 HP to target some major markets. Thus, exports are expected to stay on a positive growth curve for the next few years.
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