The tractor industry has seen mixed results in August 2024, with major players like Mahindra Tractors, Escorts Kubota, and VST releasing their sales figures. While Escorts Kubota registered an increase in sales, Mahindra Tractors and VST reported declines in their domestic sales.
Mahindra Tractors sees decline in domestic sales
Mahindra Tractors reported a 1 percent decline in its domestic sales for August 2024. The company sold 20,518 tractors in the domestic market, down from 20,647 units sold in August 2023. However, Mahindra showed strong performance in the export market, with a 36 percent increase in exports, selling 1,399 tractors compared to 1,029 units in the same period last year. Overall, Mahindra's total sales for August 2024 reached 21,917 tractors, marking a 1 percent growth from the 21,676 units sold in August 2023.
Hemant Sikka, President (Agricultural Implements) at Mahindra & Mahindra Ltd., commented on the company’s performance, stating that “We have sold 20,518 tractors in the domestic market during August. The cumulative monsoon rainfall is normal to above normal in Southern, central, western, and most northern states, while it has been deficient in few eastern and northeastern states. Reservoir levels have improved substantially and Kharif sowing for paddy, pulses, oil seeds and sugarcane has progressed very well and higher than last year. The upcoming festive season, above normal monsoon, bumper Kharif harvest and favorable terms of trade for farmers are likely to drive growth of tractor industry going forward. In the exports market, we have sold 1399 tractors, a growth of 36 percent over last year.”
Escorts Kubota reports modest growth
Escorts Kubota reported a slight increase in sales, with a total of 5,614 tractors sold in August 2024, reflecting a 0.4 percent growth compared to 5,593 units sold in August 2023. The company's domestic sales increased by 0.1 percent, with 5,205 tractors sold, while exports rose by 3.5 percent, with 409 units shipped, compared to 395 units last year.
VST sales decline despite overall growth
VST Limited experienced an 11 percent decline in tractor sales, selling 394 units in August 2024, down from 421 units in the same month last year. However, the company saw overall growth in its total sales (including power tillers), registering a 9.38 percent increase. VST sold 4,416 units (tractor + power tiller) in August 2024, up from 4,037 units sold in August 2023.#
As the tractor industry navigates these mixed results, the upcoming festive season and favorable agricultural conditions are expected to play a crucial role in shaping future sales trends.