Tractor sales hit all-time high last fiscal; Sonalika registers highest 42% growth


Even as the auto industry was playing hide and seek with sales numbers in FY21 owing to various reasons, the tractor industry has been on an all-time high during the last financial year. While most tractor makers have shown growth margins, North India based Sonalika Tractors has recorded the highest domestic growth in tractors at 42%.

Sonalika’s growth surpasses the industry growth of 27% as the company recorded an annual sales volume of 1,39,526 tractors in FY21. This even as the country’s largest tractor maker,

dropped a couple of market share points though retaining the numero uno position.

“We have surpassed industry growth by a significant margin amidst the most challenging year, a testimony that we have laid a strong foundation to remain closely knitted with our farmers “, said Raman Mittal, Executive Director, Sonalika. Mittal added that Sonalika achieved this growth through its widening distribution network and new launches.

The tractor industry in FY21 hit an all-time high sales touching the 9 lakh unit mark.

Infact according to figures released by SIAM today, commercial vehicle sales stood much lower at 5.69 lakh units in FY 21, down by 13 per cent.

The other segments , passenger vehicles was down by 6 per cent at 27.11 lakh units in FY 21 and two wheelers down by 9 per cent at 15,119,000 units for the same period.

Mahindra the market leader too saw an 18% growth at 3.4 lakh units in FY21. “Impact of lower base coupled with continued positive sentiments driven by healthy reservoir levels, higher MSP and increased liquidity, have led to strong wholesale growth in March. Tractor demand is expected to remain strong as Rabi harvesting is progressing well along with the onset of sowing of summer crops in select markets”, said Hemant Sikka, President – Farm Equipment Sector at Mahindra.

READ  Trai seeks views on framework to regulate cloud service providers

However the market leader Mahindra lost market share, to below 40% attributing it to supply constraints, confident to make it up this fiscal.

TAFE and Sonalika both gained market share in the same period. TAFE grew from 17 to 18% and, Sonalika grew from 12.9 to 14%. Escorts and John Deere are fighting close, at 10.8% and 10.3% respectively.

Our pace of transformation during the year has been faster than ever before across various verticals, says Mittal. Experts say Sonalika has not only widened channel networks at a pace faster than ever before by adding 145 new ones, thereby strengthening its national presence, but it has also introduced the highest number of six products during the year. “This includes the Tiger Electric model, and our regional technology introductions Mahabali and Chhatrapati, while constantly upgrading products with latest technology features like 4 wheel drive technology, multi speed transmission and precision 5G hydraulics”, adds Mittal.

Industry experts say tractor demand is expected to remain robust during the coming quarter following the onset of summer crop sowing in select markets and a good monsoon.

While the country saw a bumper crop output, the price realisation for the farmer has also been very good, said industry watchers. As per the Directorate of Economics and Statistics, the MSPs for 2020-21 were up from 2.1 to 12.7 percent, as compared to last year for Kharif and Rabi crops.

These growing tractor sales trends were not limited to India as growth has been witnessed in export markets as well for many of the brands.

READ  Pound euro exchange rate: GBP/EUR steadies as doubts haunt Brexit delay vote

The last year also saw larger manpower availability for agricultural purposes following reverse migration from urban to rural areas after the imposition of the countrywide lockdown. Governmental support schemes such as MGNREGA and PM-KISAN brought in liquidity to rural incomes, noted a recent report from ICRA.



READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here