Mahindra & Escorts Tractor Sales – April 2020
While the Passenger Cars, Two Wheelers and Commercial Vehicles reported a Zero sales in April 2020; minimal domestic sales have been reported by Tractor Manufacturers. M&M announced that its Farm Equipment Sector (FES) sold 4,716 units in April 2020 in the domestic market and has exported 56 units. Even Escorts Agri Machinery Segment announced overall sales of 705 tractors in April 2020 against 5,264 tractors sold in April 2019. Domestic tractor sales of Escorts was at 613 tractors against 4,986 tractors in April 2019.Apr’20Apr’19YoYMahindra Tractors4,71627,495-83%Escorts6134,986-88%
Mahindra’s overall sales was 4,772 units in April 2020, as against 28,552 units in Apr’19. Its domestic sales saw a decline of 82.8% while overall sales slumped by 83.3%. Exports were down by 94.7% against 1,057 units from April 2019.
Sales was primarily impacted by nationwide lockdown due to which dealerships were closed in most areas and for majority part of the month. The sales numbers show abover were recorded in last few days of the month after the exemption of sale of Agri Machinery was announced by the Union Government on 20th April. Ground situation is expected to improve further in coming days. Overall rural sentiments are positive because of good expected output of Rabi crop and a favorable initial prediction of monsoons this year. Opening of mandis, aggressive procurement of crops by Government, and gradual opening of banks and NBFCs are positive indicators for near term recovery in demand. Going forward, we expect tractor industry to recover faster as compared to some other sectors.