Tractor and construction machinery major Escorts Kubota on Friday reported a decline of 2.1 percent at 5,198 units in its domestic sales in August. The company had posted domestic sales of 5,308 units in the same month a year ago, as per a company release.
The Faridabad-based company's total sales (domestic+exports) also dipped by 8.5 percent at 5,593 units last month as compared to 6,111 units in August 2022.
According to Escorts Kubota, while there has been a positive momentum in some markets due to government subsidy programs, the deficient monsoon in other regions during the month of August, coupled with the shifting of key festive seasons to the third quarter of this fiscal year, impacted tractor sales this month.
"With other macro-economic factors remaining intact, if the monsoon catches up in September in these regions, tractor demand may witness a good pick up in the upcoming festive months," the company added.
Export tractor sales in August 2023 were at 395, as against 803 tractors sold in August 2022.
In the construction equipment segment, the company sold a total of 520 machines last month, up 131 percent as against 225 machines sold in August 2022.
"With the sustained pace of ongoing infrastructure project execution, demand for construction machinery continued to be buoyant in the traditionally lean month of August. Going forward, post-monsoon, we expect the construction equipment industry's growth momentum to accelerate, further propelling the country’s overall growth and development," the company said.