Mahindra and Sonalika farm double-digit growth in India’s booming tractor market

If there is one sector which has been recording consistent growth despite the Covid-induced lack of sales in other vehicle segments, then it is the tractor market. India, as is known, is the world’s largest tractor market both in terms of production and sales. While the Covid-19 disruption at a time when the country saw reverse migration, a bountiful monsoon, a favourable Kharif season and rise in disposable income in rural India have ensured that tractor manufacturers are benefiting from the speedy sales momentum driven by rural India demand.

Mahindra Tractors, the world’s third largest tractor company, has reported domestic market sales of 21,173 units in December 2020, which marks srong 23% year-on-year growth (December 2019: 17,213).  For the cumulative April-December 2020 period, a total of 253,284 tractors were sold, with Mahindra Tractors clocking 8% YoY growth (April-December 2019: 234,277).

Total tractor sales (Domestic + Exports) during December 2020 were at 22,417 units, as against 17,991 units for the same period last year.Exports for the month stood at 1,244 units.

Commenting on the performance, Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra said, “We have sold 21,173 tractors in the domestic market during December 2020 with a growth of 23% over last year. The wholesale volumes continued to be strong fueled by restoration of channel inventory post the festive season, announcement of hike in tractor prices by major OEMs and anticipation of sustained demand on the back of higher Rabi acreage, government of India support in Kharif procurement and rural development schemes. In the exports market, we have sold 1,244 tractors, a growth of 60% over last year.”

Sonalika Tractors on a roll
Sonalika Tractors has reported that it has registered its highest ever December sales of 11,540 tractors and highest ever market share of 16.1%.And, in the nine-month period of April-December 2020, the tractor makers has clocked sales of 100,000 tractors, which has consistently achieved over the past three years. Only this time around d, the 100,000 units have come in a shorter period of time.

Despite the pandemic-hit year,Sonalika introduced 5 new premium tractors in 2020 including the Tiger, Sikander DLX, Mahabali and Chhatrapati. They have recently been joined by the Tiger Electric, Sonalika’s new electric tractor launched on December 23, 2020 at Rs 599,000.

Sonalika Group's Raman Mittal with the recently launched Tiger Electric tractor.

Commenting on the company’s strong sales, Raman Mittal, executive director, Sonalika Group, said, ‘We have taken just three quarters to accomplish what was being achieved annually over the last three years. We have surpassed our entire FY2020 sales to sell over 100,000 tractors in just 9 months of FY2021, while recording 33.3% growth,which is 3x the industry growth of 12%. No external hardships like the pandemic, unfavourable factors can deter our passion to develop and offer customised, high quality productsto farmers globally. We have set our standards high with a mission to touch 100,000 tractor sales in every six months and achieved 50% of it this year despite a challenging one the entire automotive fraternity.”

He added, “Sonalika Tractors’ remarkable performance in 2020 is an outcome of the brand’s farmer-centric approach and a product offensive strategy, while remaining committed to drive farm mechanisation and deliver prosperity worldwide.’

Also read: Tractor sales cross half-a-million mark in first nine months of 2020