Sonalika Tractors in a statement has announced that it saw a 55% increase in the sales of tractors in June. Sales were reported to be 15200. Industry growth has been only 23% and, Sonalika has managed to double its growth rate as compared to the Industry. The company had reported 9177 sales in May.
The jump in sales is being attributed to good summer crops and the measures announced by the Central government. Experts also believe that life was less affected in rural areas due to COVID-19 and, thus agricultural activities did not stop and, thus farmers were able to get good crops and revenue for their produce which has also helped in the sales. The IMD’s prediction of a good monsoon has also instilled confidence in the farmer and the tractor market.
Executive Director of Sonalika Tractors, Raman Mittal said that the strategy of the company was to avoid a decline in sales when the lockdown was announced and thus they prepared a strategy for it and they didn’t know that their efforts would bring in so many sales. They have achieved a 5% growth rate in Q1 which is an impressive accomplishment.
Mittal also said that the company focused its efforts on key areas that helped the company immensely. "We had already reached 80 percent utilization in the fourth week of May itself and in June we continued to operate at the optimum level," he said.
This comes just after CRISIL in its report said that the COVID-19 crisis is unlikely to have any impact on the sales of tractors. The agency said that despite a decline in sales of more than 30% the sale of tractors will likely decline by only 1% in the Indian Marke, while other forms of automobiles will see a double-digit decline in their sales.
