Sales of domestic tractors fell for the second month in a row in January.

Sales of domestic tractors fell by double digits for the second month in a row (year-over-year) in January due to weak agricultural activity. According to the Tractor and Machinery Association (TMA), domestic sales totaled 55,589 units in January 2024 compared to 65,635 units in January 2023, a decrease of 15 percent. The decline was attributed to a decline in agricultural activity due to a late harvest season and weaker rabi sowing, analysts at Kotak Institutional Equities said.

Main tractors Mahindra and Mahindra reported a 17 percent decline to 22,972 units in January 2024, while production of domestic tractors Escorts Kubota fell 7 percent to 5,817 units.

January volumes, however, increased every month. January 2024 sales were higher than December 2023 sales at 44,735 units. “The sale of tractors increased positively in January 2024 from a slowdown in previous months, probably due to expectations of a good corn harvest and favorable weather conditions for wheat cultivation,” said the Federation of Automobile Dealers Associations (FADA).

Demand increases

Hemant Sikka, head of Mahindra and Mahindra Oy’s agricultural machinery, said that with the prevailing cold conditions, the maize crop is expected to be good, which will help the key wheat crop. The government’s announcement of a good assessment of horticultural production and the continued support of the state to revive the rural economy will support positive sentiments and demand for tractors in the coming months.

Tractors production totaled 74,795 units in January 2024 compared to 90,633 units in January 2023 and 41,014 units in December 2023. Tractor exports continue to be subdued with a total of 7,185 units shipped last month, compared to 7,764 units in January 2022 and 7,391 units in December 2023. units compared to 8 million units in the same period last fiscal year. Escorts Kubota forecasts a weakening of the domestic tractor industry by 6-7 percent compared to the record industry volume in 2023 due to a high base in 2023 and heavy rains mainly in the western and southern parts of the country, the company’s management said. in its Q3FY24 earnings call.

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