1 min read.Updated: 01 Aug 2020, 05:49 PM ISTAmit Panday
Since the lockdown was eased, tractor sales have grown on the back of pent-up demand, robust rabi harvest, improved kharif sowing backed by good monsoon, increased government spending and healthy water levels in the reservoirs
MUMBAI: Sonalika Group on Saturday reported domestic sales of 8,219 units in July, up a robust 72% year-on-year. The company had sold 4,788 tractors during the year-ago period.
Total sales of the Hoshiarpur-based tractor manufacturer, including exports, stood at 10,223 units during July.
Marking a strong recovery with the gradual easing of lockdown curbs for the agriculture sector April onwards, tractor sales have grown on the back of pent-up demand, robust rabi harvest, improved kharif sowing backed by good monsoon, increased government spending and healthy water levels in the reservoirs.
According to Raman Mittal, executive director at Sonalika Group, the company's tractor sales rose 18% on year during April-July.
"We have been consistently growing amidst the prevailing situation with 25% growth in deliveries (retail) in May and 55% growth in (wholesale) billing in June and 72% growth in (wholesale) billing in July. We look forward to the uptick in demand and continue our growth momentum by surpassing industry growth in the forthcoming festive season as well," Mittal said.
He also attributed the uptick in sales to new launches, which include application-specific models customised to meet requirements of farmers in certain regions.
The company's July production, however, declined 20% from June due to shortage of som key components during the month.