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The tractor industry has reported historic production, highest-ever domestic volumes and a strong growth in exports in 2020-21.
With strong domestic demand on the back of robust rural economy and recovery in exports from the second quarter of FY21, industry achieved its highest-ever production at 9.65 lakh units in FY21 against 7.78 lakh units in FY20, according to the data provided by Tractor & Mechanisation Association (TMA).
“The healthy monsoon, government support to farmers both at the central and state level and focus on mechanisation to ensure large scale coverage even during the Covid time boded well for agricultural mechanisation. TMA is happy to contribute to the rural economy during the pandemic by keeping the service and distribution constantly based on government set guidelines and extensively using technology to connect and provide uninterrupted service,” said TR Kesavan, President of TMA.
Tractor volumes zoomed close to nine lakh units and stood at 8.99 lakh units in FY21 compared with 7.05 lakh units in FY20, recording an increase of 27.5 per cent, the highest growth rate in the past 10 years.
Market leader Mahindra & Mahindra reported a drop in its market share to 38.2 per cent (sold 3,43,833 units) in FY21 from 41.4 per cent (2,91,901 units) in FY20. International Tractors Ltd, manufacturer of Sonalika brand of tractors, sold 1,17,503 units in FY21 as compared to 82,958 units in FY20 and its market share grew to 13.1 per cent from 11.8 per cent in FY20.
Despite highest-ever domestic sales of 101,848 units in FY21, Escorts’ market share saw a marginal decline to 11.3 from 11.7 per cent in FY20.
Exports up
Meanwhile, exports of tractors also saw a gradual increase in the post-lockdown phase and total tractor exports stood at 88,621 units in FY21 compared with 76,054 units, recording a growth of 16.5 per cent.
The outlook for the industry continues to be positive given the all-time high estimates of rabi production and strong rural cash flows.
Initial forecasts have also indicated a healthy normal monsoon for this year, and this will augur well for the tractor industry to maintain positive growth in the near term.
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