NEW DELHI: Favourable factors such as the timely arrival of the south west monsoon, a record Rabi crop and recent government initiatives to support farmers’ incomes helped tractor manufacturers report robust sales growth in June.
Sonalika reported a 55 per cent growth in its domestic sales in June 2020 at 15,200 units, while Escorts’ (EAM’s) domestic sales stood at 10,623 tractors, a growth of 22.8 per cent year-on-year. Market leader Mahindra & Mahindra’s Farm Equipment Sector (FES) domestic sales surged 12 per cent to 35,844 units, as against 31,879 units sold in June 2019.
Hemant Sikka, President - Farm Equipment Sector, M&M said, “The timely arrival of the south west monsoon, combined benefits of a record Rabi crop, Government support for Agri initiatives and very good progress in the sowing of the Kharif crop have led to positive sentiments among farmers. These underlying factors along with better cash flows in rural markets have helped boost tractor demand during June.”
Raman Mittal, Executive Director, Sonalika Group, said that the farmers were happy with the money in their hands on account of a good rabi harvest.
“This positive sentiment is expected to continue and we are well positioned to gain from the same,” he added While tractor sales picked up, demand for commercial vehicles continue to remain weak on account of a fall in infrastructure and mining activity amidst the Covid-19 pandemic. Tata Motors, India’s largest CV maker, disclosed a 90 per cent fall in CV sales in the first quarter of FY21. Tata sold 9,274 units between April-June this fiscal as against 94,934 units during the same period last year.
Hinduja Group flagship firm Ashok Leyland also reported a 81 per cent decline in total vehicle sales at 2,394 units in June. Girish Wagh, President, CV Business Unit, Tata Motors said, “There are early recovery signs in a few sectors, and we look forward to a gradual pickup in demand on the back of overall economic recovery, while we continue to address challenges of intermittent demand and supply disruptions”.
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