CHENNAI: Driven by bountiful monsoons, robust Kharif sowing and good cash flow in the hands of farmers, the tractor industry has reported a significant rise in sales in the month of August.
Tractor makers have been reporting good sales in the past few months and showing signs of recovery. However, in August, growth has hit a faster band. Two major tractor manufacturers—Escorts and Mahindra & Mahindra—have reported 80 per cent and 69 per cent growth in sales year-on-year.
Escorts sold 7,268 tractors, its highest-ever August sales. Its domestic tractor sales stood at 6,750 tractors against 3,763 in August 2019. Exports witnessed a 90.4 per cent growth.
Similarly, Mahindra & Mahindra’s tractor segment reported a strong growth in August 2020. The company sold 23,503 tractors in August this year against 13,871 tractors in August 2019.
“We remain optimistic for the coming festive months. Market sentiment continues to be highly positive and the supply side has improved significantly as compared to last month,” said Escorts in a statement. Mahindra and Mahindra authorities agreed and said that the company is expecting the positive rural sentiment to be translated into robust tractor demand in the next few months.