As per the FADA report for November, the outlook is promising, with a bumper Kharif harvest expected to ease food inflation, potentially boosting consumer sentiment in the months ahead.
09 Dec 2024 | 3058 Views | By Yukta Mudgal
After a dip during the festive season, the total tractor retail sales revived year-on-year in November. According to the Federation of Automobile Dealers Associations' data for November 2024, the industry saw a growth of 29.9%, with each brand showing substantial upward Y-o-Y momentum.This primarily happened on the back of positive ...
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After a dip during the festive season, the total tractor retail sales revived year-on-year in November. According to the Federation of Automobile Dealers Associations' data for November 2024, the industry saw a growth of 29.9%, with each brand showing substantial upward Y-o-Y momentum.This primarily happened on the back of positive sentiments driven by robust government spending, and the ongoing rabi sowing.
The total tractor retail sales increased to 80,519 units in November 2024, from 61,996 units in the same month last year, showing an on-year rise of 29.9%. As per the FADA report, the outlook is promising, with a bumper Kharif harvest expected to ease food inflation and improve the broader macroeconomic environment, potentially boosting consumer sentiment in the months ahead.
Mahindra & Mahindra, maintaining its position as the largest shareholder with 24.2% market share in the industry, showcased a 34.8% increase with 19,526 units sold in November. Its Swaraj division also saw an uptick in sales to 14,696 units from 11,495 units sold last year, same month.
All the companies performed well in retail sales in November 2024. Retail tractor sales of Sonalika Tractors (International Tractors Ltd) rose to 10,858 units in November 2024 from 8,293 units, same month, last year. John Deere, too, recorded 35.2% Y-o-Y growth with 5,982 units sold. CNH Industrial witnessed 32.7% growth in retail sales to 3,102 units, and Kubota Agricultural Machinery’s retail sales grew by 26.3% to 1,273 units.
Tractors and Farm Equipment Ltd’s (TAFE Ltd) retail sales grew to 9,383 units Y-o-Y from 7,234 units in November 2023. Indian multinational conglomerate, Escorts Kubota’s tractor retail sales increased by 18% to 7,395 units, according to FADA data. With 6.90% market share, Eicher Tractors' retail sales increased by 22.8% to 5,557 units in November.
M&M's wholesale tractor sales reached 31,746 units in November 2024, marking a 2% increase. However, Escorts Kubota Ltd sold 8,730 units domestically from 9,503 units sold in November 2023, reflecting a decline of 8% Y-o-Y. As per the tractor company, it happened due to change to the major festive days being shifted to October this year.
Following a flat performance in the first half of the fiscal 2025, the tractor industry is expecting an overall double-digit growth in the second half. Major brands are expecting a positive growth with increased minimum support prices for crops, improved reservoir levels, and positive terms of trade.