Tractor Sales Statistics – September 2020

Tractors sales in India continued its strong sales momentum and reported a growth of 28.4% in Sep’20 v/s Sep’19.

Tractor sales was positively impacted with the monsoon progress and spread. Riding high on back of good monsoons, favorable Kharif season and increased disposal income in the rural areas majority OEMs registered double-digit growth in September 2020 sales.

OEM wise Tractor Sales Performance for September 2020 – 

  • Mahindra + Swaraj commanded a Market Share of 38.99% in September 2020 and it recorded the highest market share fall by -3.6% when compared to September 2019.
  • Sonalika registered a record Market Share increase of 2.24% in Sep’20 v/s Sep’19. It also registered a YoY growth of 51.4%! Sonalika has been extremely consistent in the past few months and the sales growth is a testimony of it. It infact posted their highest ever monthly sales in Sep’20!
  • TAFE registered sales growth too and grew 38% in Sep 2020 v/s Sep 2019. It saw its market share increase by 1.2% and ranked second in the list.
  • Escorts  recorded a YoY growth of 8.9% and its market share fell by -1.8%.

Tractor OEM Market Share in India for September 2020 – 

Tractor Sales Statistics for June 2020 – India

Around 92,888 tractors were sold in the Indian market for June 2020 and the Industry registered a YoY growth of 22.4%!

While we saw a degrowth of -47.2% in the Passenger Vehicle sales for June 2020 (Source); the positive momentum in tractor sales is a clear indication of growing economic activities in the rural India. The above average monsoons and the government boost for agriculture has benefited the Rural India/Bharat and the tractor sales also indicates a robust harvest this year.

The OEMwise Tractor Sales for June 2020 is as shown below –

Rank OEM Jun-20 Jun-19
1 M&M + Swaraj 35,844 31,879
2 TAFE 19,084 14,109
3 Sonalika 13,691 8,827
4 Escorts 10,623 8,648
5 John Deere 5,861 6,683
6 New Holland 3,845 2,568
7 Kubota 1,428 951
8 VST 789 644
9 Captain 518 345
10 Indo Farm 303 210
11 Force 263 283
12 Ace 256 196
13 Preet 202 141
14 SDF 181 375
TOTAL 92,888 75,859

The Tractor Industry registered an increase in sales to 92,888 units in June’20 from 75,859 units in June’19. The YoY Growth Analysis and the Market Share statistics is as highlighted –

  • M&M and Swaraj were the Market Leader and India’s largest selling Tractor manufacturer for June 2020. It sold 35,844 units and commanded a Market Share of 38.6%. However; the OEM registered a Market Share fall of -3.4%.
  • TAFE grew an impressive 35.3% YoY and was the second best tractor manufacturer for the month. It was able to increase its Market Share to 20.5% in June’20 v/s 18.6% in June’19.
  • Sonalika was the dark horse and recorded the highest Market Share growth in June 2020! Sonalika Tractors saw a YoY growth of massive 55.1% and its Market Share shot up to 14.7% in June’20 from 11.6% in June’19!
  • Escorts was able to match the overall industry growth of 22-23% in June’20. The OEM sold 10,623 units in June’20 v/s 8,648 units sold in June19.
  • John Deere was the only tractor manufacturer in Top 5 to record a YoY degrowth. It also registered a Market Share fall of -2.5% in June’20 v/s June’19!

Data Source: Tractor Junction

Tractor Sales Statistics India – FY2020

Tractor Sales in India contracted by over 10% in FY2019-20 v/s FY2018-19. It is the first in past 3 years that the Tractor Industry saw a degrowth!

Tractor Sales Data have been an apt indicator about the performance of Rural Economy in the country. India is an Agriculture driven economy and the contribution of Agriculture on India’s GDP is as high as 16%. Contribution of Agriculture sector in Indian economy is much higher than world’s average (6.4%). Also almost 70% population in the Rural Areas primarily depend on agriculture for livelihood.

The Tractor Industry in India also suffered in FY2020 due to economic slowdown, unusual monsoons last year and the recent Covid19 outbreak. The Industry registered a YoY degrowth of -10.1% in FY2019-20.

OEMwise Tractors Sales Statistics –

  • Market Leader Mahindra & Mahindra recorded a drop of -7.8% in FY20 v/s FY19. However; Mahindra saw 1% increase in Market Share and strengthened its position in the market. Do note that Mahindra’s volumes include PTL numbers too (i.e. Swaraj Tractors).
  • TAFE continued to be in the 2nd spot; but lost hefty -1.41% Market Share in FY20. TAFE’s loss was primarily John Deere’s gain. John Deere had an exceptional FY20 and was one of the few OEMs to record a positive YoY growth and helped gain Market Share.
  • Do note that Indian OEMs have clear dominance in Tractor Industry. The Top 4 OEMs (M&M, TAFE, Sonalika & Escorts) combined command a Market Share of over 81% and is quite impressive. Will this scenario ever happen in passenger cars too where Indian OEMs lead the way?
  • Japanese Tractor Manufacturer Kubota grew stellar 18.8% in FY20 v/s FY19. Kubota is slowly making strides in the Indian Tractor market but has a long way to go for gaining volumes.

Market Share Graph – 

Market Share Movement for past 5 Financial Years – 

  • M&M has been consistently maintaining the Market Share. Do note that Mahindra’s market share in past 5 FY has been almost similar!
  • TAFE’s market share has receded from 23.1% in FY16 to 16.9% in FY20. Not a good sign for the manufacturer.
  • John Deere has gained good traction in past years and its Market Share shot from 6.1% in FY16 to 9.6% in FY20!
  • Kubota’s growth too has to be noted – has been able to jump to 1.8% Market Share in FY20.

Data Source: Tractor Junction