The FADA noted that rural retail sales of tractors dropped by 1.3% YoY in October 2024, while in urban areas, they rose by 5.4%.
06 Nov 2024 | 7747 Views | By Yukta Mudgal
Retail sales of tractors increased by 3% YoY in October 2024 on the back of robust market sentiments, supported by a better monsoon, the festival season, and increase in minimum support price, according to the Federation of Automobile Dealers Associations (FADA).
The total retail tractor sales grew to 64,433 ...
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Retail sales of tractors increased by 3% YoY in October 2024 on the back of robust market sentiments, supported by a better monsoon, the festival season, and increase in minimum support price, according to the Federation of Automobile Dealers Associations (FADA).
The total retail tractor sales grew to 64,433 units in October 2024 from 62,507 units in the same month, previous year. The dealers’ association noted that rural retail sales of tractors dropped by 1.3% on year in October 2024, while in urban areas tractor retail sales grew by 5.4%.
Both Navratri and Diwali, festivals with much cultural importance, fell in October this time. “These festivities traditionally account for 30–35% of total annual auto sales, so the industry's focus was keenly on how October would unfold. With dealers entering this crucial period fully committed and carrying all-time high inventory levels, the month did not disappoint," CS Vigneshwar, FADA President, said.
Among tractor manufacturers, retail sales of top tractor brands– Mahindra & Mahindra and its Swaraj division, grew by 4.3% and 1.5% respectively in October, to 14,792 units and 11,227 units respectively. Retail tractor sales of Sonalika Tractors (International Tractors Ltd) also rose to 7,983 in October 2024 from 7,713, same month, last year
John Deere, which has a market share of 9.13%, recorded 29% year-on-year growth with 5,884 units sold in October. CNH Industrial witnessed 4.6% growth in retail sales to 2,596 units, and Kubota Agricultural Machinery’s retail sales grew by 6.3% to 1,161 units.
However, not all tractor manufacturers have experienced similarly. Tractors and Farm Equipment Ltd’s (TAFE Ltd) retail sales remained almost flat at 8,767 units sold in October 2024.
Indian multinational conglomerate, Escorts Kubota’s tractor retail sales declined by 3.57% on year to 6,043 units, according to FADA data. The company’s retail market share stood at 9.38%. Eicher Tractors' retail sales also fell 13.5% year-on-year in October.
On the wholesale (dispatches to dealerships) front, Mahindra & Mahindra and Escorts Kubota recorded significant growth during October. Mahindra & Mahindra sold 30% more tractors in the domestic market to 64,326 units, while Escorts Kubota reported 22.6% growth to the highest-ever October sales at 17,839 units.
Reflecting positive sentiments, Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra Ltd., said, “With festive season providing momentum to positive sentiments, we expect demand to remain strong in the coming months."
In a regulatory filing, Escorts Kubota noted that the industry experienced an increase in demand due to festivals falling in a single month (October), and that favourable macroeconomic conditions led to record sales levels.