Tractor makers farm robust growth, Mahindra and Sonalika hit new highs in September

In what is an indication of better times in rural India is the return of strong demand for tractors in September 2022. The positive sentiment in the farming sector augurs well for India Auto Inc as rural India is the key growth driver for entry level vehicles, particularly fuel-efficient commuter motorcycles and passenger cars.  

Tractor market leader Mahindra & Mahindra’s Farm Equipment Sector (FES), has reported domestic market sales of 47,100 tractors, a 21% year-on-year increase (September 2021: 39,053 units). This the company’s highest-ever monthly sales.

Cumulative sales for the first six months of FY2023 (April-September 2022) have crossed the 200,000 mark at 202,305 units, up 12% (H1 FY2022: 180,667 units)

Commenting on the performance, Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra said, “This is our highest-ever sale in a month. Demand remained strong during the month owing to festive boost, which we expect to continue in October as well. With kharif crop harvest starting soon and crop prices holding firm, the sentiment is positive. Above normal monsoon has improved the reservoir levels, leading to high moisture content in the soil, which is very positive for higher food grain production in the upcoming rabi season. In the exports market, we have sold 1613 tractors with a growth of 26% over last year”.

Meanwhile, Sonalika Tractors too has notched its best-ever monthly sales in September 2022 – 18,619 units to record 26% YoY growth. On the production front too, the company hit a new monthly high with 15,563 tractors.

Raman Mittal, Joint Managing Director, International Tractors Ltd, said, “The festive season brings in exciting times which are full of positivity. We are delighted to receive an overwhelming response for our customised tractor range and also stepped up our production. We are excited to have clocked highest ever monthly sales of 18,619 tractors with 15% market share (estimated) and have grown by 26.2%, thereby beating industry growth (estimated at 18.9%).”

According to online tractor platform Tractor Junction, Gujarat, Uttar Pradesh, Maharashtra, Rajasthan, Bihar and Karnataka accounted for nearly 75% of tractor sales in September. While Mahindra led the sales chart, it is followed by Swaraj Tractor, Massey Ferguson, Sonalika Tractors, Escorts, John Deere, and Eicher Motor.

Rajat Gupta, founder, Tractor Junction said, “Tractor sales in September were higher month on month. The traction in the first few months of this year’s monsoon season was low on account of the uneven rains; it picked up with the onset of the festive season. The sales of tractor and other farm equipment mirror the health of not only the rural but also the overall economy."

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