Coronavirus failed to reduce demand for tractors last year as sales hit an all-time high & beat 2018 volumes, the highest so far for the industry.
According to data supplied by the Tractor and Mechanisation Group, the apex industry lobby, tractor sales in the domestic market shuts down at 802,670 units in 2020, 11% higher than 2019 volumes and 1% more than 2018.
Best sales volume was by all accounts not the only reasoning, why 2020 stuck out. The year likewise saw the minimal month-to-month sales recorded in the recent history. The cross country lock-down back in the month of April handicapped tractor sales, cutting down deals to approximately 12,000 units, which was in excess of multiple times below the month to month sales volume average of 2020. That makes the entire year's sales projection even more admirable.
"This development has been because of a few positive elements in the rural economy promoting development of the homegrown tractor industry, additionally bringing about an awesome festive season." said, President, Farm Equipment, Hemant Sikka.
Improvement in the farming harvests, the public authority's provincial advancement plans, better Minimum Support Price (MSP), more rains and adequate reservoirs water levels resulted in better demand for tractors in 2020.
The year likewise saw higher labor accessibility for agrarian purposes because of converse movement from metropolitan to rural territories after the pressing of the lock-down. Centres development plans, like MGNREGA and PM-KISAN carried new sources of income to rural livelihoods, a ICRA report stated.
"Consecutive harvests Rabi and Kharif crops, combined with ideal procurement of yields, guaranteed consistent dissemination of cash in the provincial economy. Government spending on farming and rural turn of events, and the MGNREGA expense this year have expanded generously," commented Sikka.
While the nation saw an excellent crop yield, the value realization for the farmers has likewise been generally excellent, said industry experts. According to the Directorate of Economics and Statistics, the MSPs for 2020-21 were amended upwards in the scope of 2.1 to 12.7% across Kharif and Rabi crops contrasted with 2019-20.
The rainstorm was additionally higher than the significant stretch period by 9% during the months of June and September. The year likewise saw the third-most elevated total precipitation in 25 years, making two consecutive better than expected monsoons since 1960.
Mahindra & Mahindra ended 2020 with 39% market share and 310,908 units sold across its two fundamental brands, Swaraj and Mahindra. The company grew 6.55% in 2020 and remained the biggest producer of tractor in the nation.
TAFE completed 2020 with sales deals of 145,861 units and a market share of 18%. With 15.6% sales growth in 2020, the organization remained the second-biggest maker of tractors in India.
Sonalika Tractors, a brand of International Tractors, sold 120,733 units in 2020 and holds a market share of 15 percent with 40.5% growth rate. Sonalika is the third-largest tractor producer in India. Escorts ended the past year with sales deal rising 3.4% to 90,040 units and a share of 11%.
