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Bucking pandemic slowdown:June tractor production highest since Jan 2019

Bucking pandemic slowdown:June tractor production highest since Jan 2019

    Bucking pandemic slowdown:June tractor production highest since Jan 2019

Bucking pandemic slowdown: June tractor production highest since Jan 2019

11 Jul, 2020

At a time when the entire auto sector factories are operating at very low capacity due to coronavirus, factories producing tractors are bucking the trend. June tractor production was the highest since January 2019.

According to Tractors Manufacturers Association (TMA's) data in April 2020, total tractor production was 158 units, which rose to 81,445 units in June on the backdrop of an increase in sales which was over five times of May sales. Another interesting fact was June production was higher by 25 per compared to the same month last year.

The timely arrival of monsoon, record rabi crop, as well as government support for Agri initiatives, helped tractor sales grow in an otherwise dull auto market.

In January 2020, according to TMA data, total tractor production was 68,503 units. It dropped to 39,200 units in March when Covid-19 started spreading and a complete lockdown was announced by the government.

In, April the production dropped drastically to 158 units.

After the government relaxed norms for agricultural activities, in May, production rose to 30,751 units as demand for tractors improved drastically and it further increased to 81,445 units in June 2020.

As far as sales were concerned, in January tractor sales were 59,367 units, which increased to 64,937 units in February and dropped to 35,216 units and 12,456 units, respectively, in March and April. Sales started picking up in May to 64,860 units and further to 98,648 units in June 2020.

Hemant Sikka, president of Farm Equipment Sector for Mahindra & Mahindra Ltd, said that the timely arrival of the southwest monsoon, combined benefits of a record Rabi crop, government support for agriculture initiatives and progress in the sowing of the Kharif crop have led to rising in positive sentiments among farmers. These underlying factors along with better cash flows in rural markets have helped boost tractor demand during June.

"It is expected that this demand will continue to remain buoyant in the coming months," he said.

Escorts Ltd Agri Machinery Segment (EAM's) management said that they have seen unprecedented demand this month. The industry is expected to grow significantly backed by pent-up demand of the lockdown period, better farmer sentiment due to good monsoon prediction reflected in better than normal Kharif sowing, better rural cash flows owing to record crop output and crop prices, and reasonably good availability of retail finance.

                                     January 2019 onwards

       Month         Total Production

               Total Sales

          (including Sales)

Jan-19                73295 57488 6527
Feb-19                59604 54281 6721
Mar-19 57629 70686 8371
Apr-19 68623 62497 5142
May-19 65133 64514 6423
June-19 53781 82064 6205
July-19 69738 51975 6404
Aug-19 70039 44030 6980
Sep-19 77600 91672 7036
Oct-19 68545 113638 6749
Nov-19 61763 60352 5920
Dec-20 49320 50803 7997


                                             January 2020 onwards

 Month  Total Production

Total Sales

  (including Sales)

Jan-20 68053 59367 5980
Feb-20 69280 64937 7227
Mar-20 39200 35216 3984
Apr-20 158 12456 629
May-20 30751 64860 4419
Jun-20 81445 98648 5760


Read More

Mahindra sales down April 2020      

MAHINDRA TRACTOR SELLS 35,844 UNITS IN INDIA IN JUNE 2020                       

Read More

            Mahindra sales down April 2020  


  Read More

Mahindra sales down April 2020      


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