Around 16,616 tractors were sold in the Indian market for May 2021 and the Tractor Industry registered a drop in volume of 21,669 against April 2021. This was about 56% down on a month-on-month basis.
The Tractor Industry has been experiencing continuous exceptional performance in FY2021 and the sales have shot up much ahead of expectations. The supply-side situation was normalizing too and was no longer expected to be a bottleneck to meet demand. However, May was an exception due to the production constraints.
The spike in sales is attributed to better monsoon season, easy finance availability, increased MSPs, and market-rate realization. The agricultural sector wasn’t impacted that much by the pandemic, in comparison to urban areas. The market continues to be strong on the back of positive macro-economic factors and strong rural cash flows.
Mahindra & Mahindra recorded Domestic retail of 3,803 units in May 2021, as against 8,067 units during April 2021. Swaraj Tractors a unit of Mahindra, registered a volume of 2,952. Together, they sold 6,755 units.
Sonalika registered a volume of 2,216 units followed by TAFE which registered a volume of 1,901.
The Industry saw a volume of 16,616 which was almost a drop of 56%, as against 38,285 units. Of course, the constraints on production is the primary reason to be attributed to the drop. With June opening up many manufacturing units, we can expect a stronger recovery of the tractor industry in June 2021.