Tractor sales continue to grow
Tractor makers continued to clock higher sales in July, aided by the Centre’s cash sops for farmers, higher kharif sowing and timely and normal monsoon in June and July.
Companies expect to reach full capacity in August after fixing the supply chain, which collapsed during the lockdown to contain coronavirus (Covid-19). Mahindra & Mahindra’s farm equipment sector (FES) posted 27 per cent growth in tractors sales at 25,402 units in July 2020, compared to 19,992 units in the same month a year ago.
Domestic sales rose 28 per cent to 24,463 units in July from 19,174 units, a year ago.
Escorts reported a 9.5 per cent growth in July sales at 5,322 units, compared to 4,860 units in the same month last year. Domestic sales rose by 9.9 per cent to 4,953 units from 4,505 units while exports grew by 3.9 per cent to 369 units from 355 units, a year ago.
Sonalika Tractors reported a 71.7 per cent growth in domestic sales at 8,219 units in July, compared to a year ago. The company sold a total 10,223 units, including exports. Comparative figures were not available.
Hemant Sikka, president of FES, at Mahindra & Mahindra, said, “These are our highest-ever July sales. The strong demand momentum continued, aided by positive sentiment due to good cash flow to farmers, higher kharif sowing, a timely and normal monsoon in June and July and continued higher rural spending by the government.”
Escorts said the company had supply chain challenges in July, and as a result, it could operate only at about 50 per cent capacity The situation eased by July end, and the company expects to go back to full capacity any time up to mid-august.
Raman Mittal, executive director at Sonalika Group, said, tractor demand and farmer sentiment have picked up on account of various conducive factors.
They include increase in minimum support price, favourable monsoon and bumper sowing of summer crops. “Positive sentiment is expected to continue and we are well positioned to gain from it,” added Mittal.