Total vehicle registrations reached 42,88,248 units during the festive period, 11.76% higher from 38,37,040 units recorded in the same period in 2023, as per FADA.
15 Nov 2024 | 2535 Views | By Yukta Mudgal
Retail sales of tractors dropped by 1.64% during the 42-day festive period of the current financial year, making it the only vehicle category to face a decline during that period, according to data from the Federation of Automobile Dealers Association (FADA).Tractor sales declined due to a lack of infrastructure spending, ...
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Retail sales of tractors dropped by 1.64% during the 42-day festive period of the current financial year, making it the only vehicle category to face a decline during that period, according to data from the Federation of Automobile Dealers Association (FADA).Tractor sales declined due to a lack of infrastructure spending, FADA noted. Besides agricultural use, tractors have commercial applications as well. Hence, infrastructure activities such as building of roads have an impact on their sales.
The period witnessed the decline of tractor sales to 85,216 units from 86,640 units in the same period last year. The festive season data compiled vehicle retail sales from the beginning of Navratri to 15 days post Dhanteras (from October 3, 2024 to November 14, 2024).
“Looking ahead, the auto industry is yet to fully benefit from a government push in infrastructure spending, which we expect will bolster commercial vehicle sales,” CS Vigneshwar, FADA President, said.
Focusing on the outlook for the rest of the calendar year, Vigneshwar said tractors segment should perform better, supported by good rainfall and the government's increase in the Minimum Support Price (MSP) for crops.
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%.
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 also rose to 7,983 units in October 2024 from 7,713, in the same month, last year. However, Tractors and Farm Equipment Ltd’s (TAFE Ltd) retail sales remained almost flat at 8,767 units sold in October 2024, and that of Escorts Kubota’s declined by 3.57% on year to 6,043 units.
In the first half of FY25, the tractor industry's sales volume remained almost flat at 472,000 units, compared to 469,000 units sold in the year-ago period. However, the industry is likely to grow by 13-15% in the second half, contributing to an overall growth of 6-6.8% in the current financial year, according to Mahindra & Mahindra.