The demand for tractors is in upswing & it is expected to remain healthy on the back of high kharif sowing & good monsoons, says Raman Mittal, Executive director, Sonalika Group. Sonalika has a pan-India network of 983 dealerships & 24 depots.
Riding on the sturdy tractor demand, International Tractors Ltd, popularly known as Sonalika Tractor, has posted 80% year-on-year growth in its domestic sales, which were at 8,250 units in August.
The Hoshiarpur- Based tractor manufacturer had sold 4,560 units during the year-ago period.
In July 2020, the company had sold 8,219 tractors in the domestic market, marking more than 70% year-on-year growth.
While the tractor demand is driven by growing agriculture economy, the latter is well supported by higher rural spending by the government that includes crop price realizations, higher procurements & increased funding under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
Raman Mittal said “August was the fourth consecutive month for the company to have achieved record growth in the domestic market”.
The company is focusing on building inventory in order to cater the run up demand in the festive season. According to Mittal, “Sales during the festive season could contribute up to 40-45% of gross volumes”.
Demand for the farm equipment, indicates the increasing mechanization of the farm fields. The farm mechanization penetration in India stands at an average of 45% of the entire crop cycle (from seed bed preparation to harvesting).
Farmers are majorly oriented towards application-based farming like puddling, mulching, baler application, orchards, horticulture among others. Paddy is the major kharif crop so, there has been a rush in demand for customized tractors to address the specialized needs & there is also an increased demand for application specific implements as well.
