Tractor companies cut output to reduce inventory

Home| All Blogs| Tractor companies cut output to reduce inventory
SHARE THIS

Tractor companies cut output to reduce inventory

    Tractor companies cut output to reduce inventory

Is tractor industry's golden run over?

26 Jun, 2019

CHENNAI: Tractor sales fell 15% for the last three months forcing tractor companies to cut production.
While
Mahindra & Mahindra has announced it will take between 5-13 no-production days across its various automobile and farm equipment sector plants in the first quarter of FY20, others including Escorts have also reduced production.

With the
monsoon playing truant this year, the industry is looking at contraction in demand even if demand picks up with Kharif sowing. Tractor marketers say the severe drought in key markets like Maharashtra and Tamil Nadu --where demand has gone down by 20%-40% — will impact the overall market as well.
“Monsoon situation is a worry though in the last few days it has been picking up speed. The reservoir levels are very low and drought is acute. In Maharashtra, the market is down by 30-50% and in Tamil Nadu, it is down by 20-30% already.,” said Shenu Agarwal, chief executive, Agri Machinery & emerging business, Escorts Limited.

      Want to know difference between Mahindra 575 DI XP plus & Mahindra 575 DI, Click Below:

 जानिये नये महिंद्रा 575 डीआई एक्सपी प्लस पुराने महिंद्रा 575 डीआई से कितना अलग है!      

जानिये नये महिंद्रा 575 डीआई एक्सपी प्लस पुराने महिंद्रा 575 डीआई से कितना अलग है!

  Read More


These markets together comprise just under 10% of the tractor industry and it is thanks to high-growth markets like Madhya Pradesh that the industry has been able to counter their sales drop. As far as dealer inventory goes, he said, Escorts has brought it down to between 21-25 days in the last few years.
“However in February and March some extra tractors were kept in our depot to cater to the April Navratra which turned out to be a damp squib,” said Agarwal. “As a result, our inventory was more than we would like to keep and in April, May, and June we cut production to reduce our depot inventory,” he added. Currently, the inventory levels for the tractor industry is around 5 weeks or 35 days.

 

 

“Based on the current trend, markets where demand has slowed we have optimized our stock but in markets, with positive demand, we have mobilized our resources and inventory," said Raman Mittal, ED, Sonalika Group.
 

“Things are not that bad right now (as in 2001-02) and most of the production correction has already been done,” said Agarwal.
Courtesy: Times of India

 

Read More

 कृषि के क्षेत्र में ये हैं भारत के टॉप 11 राज्य!       

कृषि के क्षेत्र में ये हैं भारत के टॉप 11 राज्य!                               

Read More  

 कृषि में मुनाफा देने वाले, ये हैं भारत के टॉप 7 ट्रैक्टर - 2021।       

कृषि में मुनाफा देने वाले, ये हैं भारत के टॉप 7 ट्रैक्टर - 2021।      

Read More  

 जानें भारत की टॉप 7 कृषि आधारित इंडस्ट्रीज कौनसी हैं!       

जानें भारत की टॉप 7 कृषि आधारित इंडस्ट्रीज कौनसी हैं!             

Read More

Top searching blogs about Tractors and Agriculture

Top 10 Tractor brands in india To 10 Agro Based Indutries in India
Rabi Crops and Zaid Crops seasons in India Commercial Farming
DBT agriculture Traditional and Modern Farming
Top 9 mileage tractor in India Top 5 tractor tyres brands
Top 11 agriculture states in India top 13 powerful tractors in india
Tractor Subsidy in India Top 10 tractors under 5 Lakhs
Top 12 agriculture tools in India 40 Hp-50 Hp Tractors in India

Write Comment About Blog.

Enter your review about the blog through the form below.



Customer Reviews

Record Not Found

Popular Posts

https://images.tractorgyan.com/uploads/27555/638f2bf45f2b0_Top-10-agro-based-Industries-in-India-2022.jpg

Top 10 Agro-based Industries in India 2022 | Tractorgyan

Agriculture is growing and expanding day by day. Along with technological advancements, the change i...

https://images.tractorgyan.com/uploads/27531/638dae2060258_top-10-secondhand-tractors-in-india.jpeg

Top 10 Second-Hand Tractors in India 2022 | Tractorgyan

Purchasing a tractor involves not only just a choice or selection of features but also involves a vi...

https://images.tractorgyan.com/uploads/27513/638aebfde4a60_Different-types-of-farming.jpg

Different Types of Farming and there factors in India

Farming is the integral or the most essential activity carried out in our economy. Agriculture is th...

tractorgyan offeringsTractorGyan Offerings

POPULAR SECOND HAND TRACTORSPopular Second hand Tractors

LOCATE TRACTOR DEALERS/SHOWROOMLocate Tractor Dealers/Showroom