Escorts, farm machinery and construction equipment company, reported a 25.6 percent drop in overall tractor sales in September, to 8,816 units.
In the same month last year, Escorts sold a total of 11,851 units, according to a regulatory filing. Domestic tractor sales this month were 7,975 units, down 30.4 percent from September 2020's 11,453 units, according to the report.
Exports, on the other hand, increased by more than double to 841 units, compared to 398 units the previous month according to the corporation.
"This year's rainfall shortfall has been fully compensated thanks to record monsoon activity in September, which bodes well for industry in the coming months. However, above-average rainfall in September has delayed harvesting in several regions of the nation, delaying the start of the festive season demand by two to four weeks "According to Escorts Ltd.
All other macroeconomic indicators are still positive. In the short term, inflation in different commodity prices remains a source of worry, according to the report.
In the construction equipment category, the corporation stated it sold 400 units in September 2020, up from 369 in September 2020, representing an increase of 8.4%.
Retail enquiries for construction equipment have increased significantly month over month, but the corporation claims that continued rains during the month have caused the bulk of consumers to postpone purchasing choices.
"However, we expect robust equipment demand in the second half of FY22, beginning in October 2021, in accordance with the previous fiscal year's trend. The government's push for infrastructure projects is also anticipated to stimulate demand. However, the prospect of future commodity price rise remains a concern " the filing added.
About Escorts Ltd.
Escorts Limited is a global corporation based in India that works in the agricultural, construction, material handling, and railway equipment industries. The company's headquarters are in Faridabad, Haryana. The firm began operations in 1944 and now has marketing activities in over 40 countries. Tractors, automobile components, railway equipment, and construction and material handling equipment are all made by Escorts.
