Tractor sales increased marginally in September, exports down up to 47 percent

Key players in the tractor industry, including Mahindra Tractors, Escorts Kubota, and VST Limited, have disclosed their sales figures for September 2024, highlighting notable trends and shifts in performance

Team RuralVoice

Published: Oct 2, 2024 - 13:15 Updated: Oct 2, 2024 - 13:16

Tractor sales increased marginally in September, exports down up to 47 percent

In September 2024, tractor companies reported a marginal increase in sales, although exports have declined by up to 47 percent. This information comes from the sales data released by major Indian tractor manufacturers, including Mahindra Tractors, Escorts Kubota, and VST. Both Mahindra and Escorts Kubota reported growth in domestic sales for September. However, they experienced a decline in exports. Meanwhile, VST also saw a decrease in its domestic sales.

Mahindra Tractors' domestic sales increased

According to the data released by Mahindra Tractors, the company recorded a 3 percent increase in domestic sales in September 2024. Mahindra sold 43,201 tractors domestically, compared to 42,034 units in the same month last year. However, the company's export performance was less encouraging, with a 10 percent decline. Mahindra exported 1,055 tractors in September 2024, down from 1,176 in September 2023. The company sold 44,256 tractors in September 2024 icluding exports, a 2 percent increase from the 43,210 tractors sold last year.

Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd. said “We have sold 43201 tractors in the domestic market during September, a growth of 3 percent over last year. Monsoon rainfall has seen an increase of 7.5 percent over LPA and this has helped increase in Kharif sowing of all crops except cotton. Reservoir levels have recovered very well and are now at 13% higher than LPA, which augurs very well for a bumper Rabi crop. On the back of a good Kharif crop and likely strong Rabi crop, rural sentiments are positive. With positive terms of trade for farmers and upcoming festivals, we expect robust demand for tractors going forward. In the exports market, we have sold 1055 tractors.”

Escorts Kubota sees sales increase

Escorts Kubota reported a sales increase of 2.5 percent in September 2024, selling 12,380 tractors compared to 12,081 units sold in the same period last year. The company achieved a 5.7 percent increase in domestic sales, with 11,985 tractors sold compared to 11,334 units last year. However, the export segment saw a sharp decline of 47.1 percent, with only 395 tractors exported, down from 747 tractors in September 2023.

VST Tractor sales decline

VST Limited faced a significant decline in sales in September 2024, selling 473 tractors, an 11.5 percent decrease compared to the 535 tractors sold in September 2023. Additionally, VST’s overall sales, which include tractors and power tillers, fell by 1.67 percent. The company sold 2,583 units in total, down from 2,672 units sold during the same month last year.

These figures show that while some companies are benefiting from robust domestic demand, challenges in the export market persist. The growth in sales for Mahindra and Escorts Kubota is a positive indicator, while VST needs to address its declining performance.