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G Balachandar
October was a month of rich harvest for the tractor industry, which posted the highest ever domestic sales. It is a sign that rural demand has begun to pick up as consumer confidence returned on account of expectations of good harvest, strong sowing data, copious water in reservoirs and availability of finance.
Raman Mittal, Executive Director, Sonalika Tractors, said the festival season is mostly when farmers upgrade their tractors to increase productivity and income.
Festivities, indeed, spurred volumes and tractor sales stood at historic high of 1,15,615 units in October.
“October has been good for the tractor industry and that month saw tractor disbursement touch highest,” said Ravindra Kundu, Executive Director, Cholamandalam Investment & Finance Company Ltd.
The October sales were marginally higher than 1,15,155 units sold in the same month last year. But compared with September 2021 sales of 92,465 units, the October volumes were higher by 25 per cent, according to data provided by the Tractor & Mechanisation Association (TMA). Total tractor production stood at 90,395 units in October.
For the April-October 2021 period, the total domestic tractor sales stood at 5,56,447 units compared to 5,16,762 units in the same period the previous fiscal, registering an increase of about 8 per cent.
“High reservoir levels, expectation of a good kharif harvest, coupled with good preparations for the rabi crop will boost positive sentiments and drive demand in the coming months,” said Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra.
The industry is sticking to its guidance of single digit growth for this fiscal after growing at 27 per cent in FY21.
Driving factors
“Rising adoption of farm mechanisation coupled with the introduction of precision farming to increase productivity have been significantly driving the Indian tractors market,’’ says Mittal.
Simultaneously, tractor exports continued to be strong with dispatches rising 75 per cent at 74,491 units during the April-October period.
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