M&M domestic tractor sales up 12% in June, exports fall 42%1 min read . Updated: 01 Jul 2020, 03:58 PM IST
- Timely arrival of monsoon, combined benefits of a record rabi crop, government support for agriculture initiatives and very good progress in the sowing of kharif crop have led to positive sentiments among farmers, the company said
MUMBAI: Mahindra & Mahindra Ltd’s (M&M) farm equipment sector or FES on Wednesday reported a 12% year-on-year growth in its domestic tractor sales in June at 35,844 units. M&M’s tractor exports fell 42% at 700 units last month.
Describing June wholesales as the company’s second-highest ever in June, Hemant Sikka, president, FES, M&M said, “The timely arrival of the south west monsoon, combined benefits of a record Rabi crop, government support for agriculture initiatives and very good progress in the sowing of the Kharif crop have led to positive sentiments among farmers."
Sikka credited improved cash flows in the rural markets for surge in the demand for tractors. “It is expected that this demand will continue to remain buoyant in the coming months," he said.
While the company’s total domestic tractor sales for the June quarter is at 64,577 units, down 22% YoY, analysts said strong demand would help recover volumes that were lost during April due to the nationwide lockdown imposed to prevent the pandemic.
Mint had, on June 29, reported that the domestic tractor segment saw strong demand through the month and was expected to record a double-digit growth. Government’s rural spending including direct benefit transfers, higher procurement and price realizations has resulted in improved cash flow, which along with the other fundamental factors is driving rural demand.
M&M had resumed tractor sales at its dealerships from April 14 after agricultural activities were allowed under essential services.