Tractor sales down 11% in April due to unseasonal rains

Chennai, May 12th

Domestic Tractor Sales Exports were down in April 2023 compared to April 2022, but production was higher year-on-year.

Total domestic tractor sales It decreased by 11 percent at 79,288 units in April this year compared to 89,201 units in April 2022, which represents a monthly rebound in sales. These April sales were also lower compared to the previous month’s volumes of 82,856 units.

Industry representatives attribute the drop in sales last month to the mismatch of festivals and off-season rains amid the upbeat sentiment of farmers.

“The lower sales growth was mainly due to higher demand for festivals which drove higher demand for Navratri and Jodi Padua in March this year as compared to April last year,” said Hemant Sika, Head of Agricultural Equipment Division, Mahindra & Mahindra Limited.

M&M sales decline

Top tractor manufacturer Mahindra and Mahindra It reported a 10 percent drop in its domestic tractor sales at 35,938 units in April. Escorts Kubota tractor volumes fell 5.5 percent to 7,252 units for the month.

However, the current sentiment is optimistic about the harvesting and purchasing of crops in full swing. Wheat purchases are very strong and have already surpassed last year’s level. He added that the high reservoir levels will help in Kharif sowing and the good cash flow from the Rabi crop will increase liquidity in the hands of farmers.

Tractor and export came out

Total tractor production increased to 86,844 units in April 2023 compared to 84,144 units in April 2022.

Exports remain under pressure as it fell significantly to 7,652 units in April this year compared to 10,715 units in April 2022 due to difficult market conditions in some countries.

In FY23, the domestic tractor industry recorded its highest ever volumes at 9.45 lakh units, up 12 per cent over FY22 volumes.

The industry expects volumes to moderate in this fiscal and expects single-digit growth for FY24, supported by healthy crop prices/MSPs, above-average reservoir levels, government support to farmers in the run-up to the election, and increased use of tractors in the non-farm sector.