Dealers sold a total of 62,542 tractors in September, up 14.7% from 54,529 units in the year-ago period, according to the data from the FADA.
08 Oct 2024 | 834 Views | By Yukta Mudgal
Domestic tractor retail sales bounced back during September with double-digit growth on a year-on-year basis after a four-month slump. Improved agriculture sector sentiments on the back of better monsoon season and crop yields boosted sales during the month.
According to the data from the Federation of Automobile Dealers Associations ...
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Domestic tractor retail sales bounced back during September with double-digit growth on a year-on-year basis after a four-month slump. Improved agriculture sector sentiments on the back of better monsoon season and crop yields boosted sales during the month.
According to the data from the Federation of Automobile Dealers Associations (FADA), dealers sold a total of 62,542 tractors in September, up 14.7% from 54,529 units in the year-ago period.
The tractor retails witnessed a significant declining trend in the current financial year, with sales dropping 1%, 28%, 12% and 11% in May, June, July and August, compared to the previous year.
"The 2024 southwest monsoon recorded 8% above-normal rainfall...which has boosted kharif sowing by 1.5% YoY. This increase in agricultural productivity has positively impacted rural demand and economic sentiment," FADA President CS Vigneshwar said.
Major tractor makers have also highlighted the positive rural sentiments. M&M’s management has also said the increase in the rainfall has helped increase in kharif sowing of all crops except cotton. The reservoir levels have recovered well, which augurs well for a good Rabi crop. Rural sentiments are positive on the back of good kharif crop and likely strong Rabi crop.
Company-wise retail sales
Mahindra & Mahindra sold 14,762 tractor units in September 2024, showing a 17.12% rise from the previous year. Similarly, M&M's Swaraj division increased its retail sales by 11.67% at 11,011 units. International Tractors Limited's Sonalika Tractors, too, saw an YoY uptick of 14.94% in this segment, with 8,116 units sold in September.
Encapsulating the overall growth, TAFE Limited sold 7,285 tractor units in September, up from 6,869 units in the previous year. A similar growth was observed in Escorts Kubota with an uptick of 8.25% compared to last year, at 6,313 units sold this month. One of the major players in the tractor industry, John Deere saw an exponential YoY growth of 28.9% with 4,843 units sold this month.
Eicher Tractors' sales are slightly higher with 3,804 tractor units sold in September 2024, up from 3,745 units in the same month, last year. CNH Industrial (India) also reported an YoY growth with sales of 2,525 units in September, up from 1,901 unit in the previous year. Kubota Agricultural Machinery, too, saw growth in tractor sales with 1,201 units sold this month, higher than 919 units sold last year, in the same month.
Among the major players, M&M's YoY market share increased to 23.60% in September from 23.11% and that of John Deere rose to 7.74% from 6.92% in the same month, last year. CNH Industrial (India), and Kubota Agricultural Machinery also saw a slight rise in YoY market share to 4.04% and 1.92% in September, respectively, from 3.49% and 1.69% in the previous year. Sonalika Tractors's market share remained almost flat with a 0.03% rise in September 2024, to 12.98%.
Positive outlook
Going forward, tractor makers and brokerages are upbeat about the sales prospects, given the robust rural sentiments.
"With timely, widespread and above average monsoon leading to replenished water reservoir levels and favourable terms of trade, we anticipate good sales growth during second half of current fiscal year," Escorts Kubota said in a press release.
Hemant Sikka, president at M&M's Farm Equipment division also noted that the company expects robust tractor demand going forward with positive terms of trade for farmers and upcoming festival season.
“Our channel checks indicated positive sentiment and higher number of inquiries even during the inauspicious (Shradd) period, which augurs well for the upcoming festive and rabi sowing season,” brokerage Nirmal Bang said in a release.