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The tractor industry saw revival in domestic demand in September as domestic sales reported a significant growth on month-on-month-basis, while exports remained at historic high.
Total tractor production also crossed one lakh mark for the third month in a row, according to data provided by the Tractor & Mechanisation Association (TMA).
Domestic tractor sales reported a 72 per cent growth at 92,465 units in September 2021 when compared with the domestic sales of 53,721 units in August 2021. But, when compared with 108,585 units in September 2020, which was a bumper month in the post-first wave lockdown phase, there was a decline of about 15 per cent.
Normal monsoon
“Strong revival in rainfall during September brought cheer to the farming community, with the entire rainfall deficit wiped off by end of September and monsoon achieving normal levels. Reservoir levels have improved and excess rainfall in September will lead to high moisture content in the soil, leading to strong Rabi sowing. With initial crop production estimates indicating the highest-ever Kharif crop, coupled with the upcoming festival season, we are optimistic of a strong demand in the coming months,” Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd, said.
In September 2021, the total domestic tractor production stood at 1,00,160 units. Tractor exports continued to zoom as it stood at 12,690 units, which was the highest-ever monthly export number.
For the half-year period ended September 30, 2021, the total domestic tractor sales stood at 440,832 units against 401,607 units in the same period previous fiscal, an increase of 10 per cent.
Total tractor production during the period crossed the half million mark and stood at 558,491 units as against 378,761 units in the year-ago period.
“The healthy precipitation received in September has helped offset the deficit in precipitation in July and August. It augurs well for the prospects of the industry over the festival season; a delayed harvesting in certain regions (on account of precipitation during late September) could, however, lead to some delay in retail sales.
“Overall, the demand drivers for the industry continue to remain favourable and are expected to support volumes over the near term,” said Rohan Kanwar Gupta, Vice-President & Sector Head, Corporate Ratings, ICRA.
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