Mahindra & Mahindra on Tuesday reported an 11 percent decline in total tractor sales at 36,405 units in April. The company sold 40,939 units in the same month last year, M&M said in a statement.
Domestic tractor sales were at 35,398 units last month, as against 39,405 in July last year, a dip of 10 percent, it added.
According to Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra, the decline in sales comes due to the preponement of high demand generating festivals of Navratri and Gudi Padwa in March this year compared to April last year.
"At present, sentiments are upbeat with harvesting and procurement of crops going on in full swing. Wheat procurement is very strong and has already crossed last year’s level. High reservoir levels will aid in Kharif sowing and good cash flow from Rabi crop will further add to liquidity in the hands of the farmers," he added.
In the export market, the company sold 1,007 tractors last month, down 34 percent from April 2022.
As per market estimates, weak agri sentiment and rural slowdown are leading to sluggish tractor sales. Brokerage firm Motilal Oswal attributes this to lower production of key crops such as wheat and weak monsoon projections for this year.
"While the wheat output has been adversely impacted due to unseasonal rains, the realisations have remained favorable as the yields are higher by 18-20 percent than the average. During the month, both Mahindra & Mahindra and Escorts-owned Farmtrac announced price hikes of Rs 10,000-15,000 per unit. The current inventory level stands at a stable 40-45 days (flat MoM)," Motilal Oswal said in a recent report.