Escorts Kubota Ltd (EKL) has projected mid to high single-digit growth in domestic tractor sales by 2025-26 on account of good rainfall projections and the government's focus on agriculture infrastructure.
"This is for sure that the industry is looking at the highest-ever volume in the tractor market this year. And if all things fall into place, we are probably looking at a 10 lakh number this year," Neeraj Mehra, Chief Officer, Tractor Business Division, Escorts Kubota Ltd said.
Mehra pointed out that all the factors that impact the industry such as the forecast for the rain have been good and all the other factors like the government focus on agri-infra have been positive this year.
Earlier, Bharat Madan, Escorts Kubota's whole-time director and chief financial officer had told Autocar Professional, pointed out that if new emissions norms are scheduled to go into effect from April 1 next year, there could be a lot of pre-buying.
The tractor industry had achieved record-breaking sales in the financial year 2023, a benchmark that is yet to be surpassed. In 2022-23, the industry clocked a sales volume of 9.45 lakh units. However, the sales declined 7% in the following financial year to 8.76 lakh units.
Credit ratings agency CRISIL also projects that higher minimum support prices for key cash crops, better replacement and construction demand amid hopes of above-normal monsoon are likely to drive domestic tractor sales to hit an all-time high of around 975,000 units in 2025-26, growing at 3-5 per cent.