Domestic tractor sales witnessed a significant slowdown in November following the record-breaking high volumes seen during the festive month of October. Meanwhile, tractor exports registered their lowest monthly figure for the calendar year last month.

Total domestic tractor sales stood at 71,300 units in November this year when compared with 118,232 units in October this year and 72,266 units in November 2023, according to the data provided by the Tractor & Mechanisation Association (TMA).

For the April-November 2024 period, total domestic tractor sales stood at 6.88 lakh units, a 4 per cent increase compared to the 6.60 lakh units sold during the same period last year.

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Industry representatives and analysts attributed the decline in volumes to the high base of October but remained optimistic about the second half of the fiscal year. They expect demand to pick up, supported by strong farm sentiments due to a good monsoon. “The slight decline in the industry is attributed to the shift in the timing of the Diwali and Dhanteras festive season compared to the previous year, said Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd.

Top tractor maker Mahindra & Mahindra reported a modest growth of 2 per cent in its November volumes at 31,746 units when compared with 31,069 units in November 2023.

Escorts reported an 8 per cent decline at 8730 units when compared with 9503 units and the company attributed the year-on-year (y-o-y) decline to the shift of major festive days to October this year. However, during the months from September to November, the company’s domestic tractor sales were up by 9 per cent to 38,554 tractors as compared to 35,387 tractors in the same period last year.

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Tractor production in November stood at 74,854 units, down from 94,771 units in October but higher than the 60,014 units produced in November 2023.

remain optimistic

Tractor exports continue to face challenges and total shipments during November were lower at 6963 units when compared with 7097 units in October this year. Despite this, exports saw a y-o-y increase from 6,722 units in November 2023.

Tractor makers project strong growth in H2 of this fiscal aided by surplus rainfall, strong reservoir levels, a hike in MSP of key Rabi crops and favourable terms of trade. With very good reservoir levels and higher MSP for key Rabi crops, farmers’ sentiments are positive and cash flows are healthy. Good progress in Rabi sowing and a good Rabi crop are expected to further boost demand for tractors in the coming months, said Sikka.