July sees 12 percent decline in tractor sales, raising concerns for the Sector

In July 2024, the retail sales of tractors in the country experienced a significant decline of 11.94 percent, translating to about 12 percent. During this period, 79,970 tractors were sold, compared to 90,821 units sold in July 2023. This downward trend is raising concerns among major tractor manufacturers. The previous year also saw a dip in tractor sales due to a weak monsoon season, and while this year’s monsoon is expected to be normal, it remains to be seen if it will help boost sales in the coming months.

According to data from the Federation of Automobile Associations (FADA) for July 2024, all major tractor companies, including Mahindra, Sonalika, and TAFE, saw a decrease in sales compared to the previous year. Mahindra & Mahindra's sales dropped by 11.92 percent, with the company selling 18,422 tractors in July 2024, down from 20,914 units sold in the same month last year. Despite this, Mahindra & Mahindra's market share slightly increased to 23.04 percent from 23.03 percent.

Mahindra’s Swaraj division also reported a 0.72 percent decline in sales, with 16,265 tractors sold in July 2024 compared to 16,383 units in July 2023. However, Swaraj Tractors' market share rose to 20.34 percent from 18.04 percent the previous year.

Other companies such as TAFE Limited, Escorts Tractors, Eicher Tractors, CNH Industrial (India), and Kubota Tractors also experienced a drop in sales. TAFE sold 7,884 tractors in July 2024, a significant decrease from the 12,420 tractors sold in July 2023. Escorts reported sales of 8,274 tractors, down from 8,534 units sold last year. Eicher Tractors saw sales of 5,420 tractors, compared to 6,796 tractors the previous year. CNH Industrial (India) sold 3,018 tractors, a drop from 3,191 units sold last year, while Kubota Tractors sold 1,461 tractors, down from 1,876 units sold in July 2023.

Sales among other tractor companies were also low, with a total of 1,834 units sold in July 2024 compared to 4,115 units in July 2023.

Sonalika-John Deere sales increased

On a positive note, Sonalika Tractors and John Deere saw an increase in sales. Sonalika sold 11,141 tractors in July 2024, up from 11,063 tractors sold in the same month last year, raising its market share to 13.93 percent from 12.18 percent. John Deere also reported growth, with sales reaching 6,251 tractors in July 2024, compared to 5,529 tractors sold in July 2023. The company’s market share increased to 7.82 percent from 6.09 percent.