Tractor sales sluggish for second consecutive year

Vijay C Roy

Tribune News Service

Chandigarh, May 5

Marred by weak farm sentiments, sales of tractors in the domestic market remained sluggish for the second consecutive year in 2015-16. According to the Tractor Manufacturers’ Association, the industry witnessed a decline in sales of over 10% in the last fiscal whereas the sales were down 13% in 2014-15. However, the industry expects that forecast of a normal monsoon this year will steer the volume and it is likely to witness a double-digit growth.

According to the statistics, 4,93,764 tractors were sold in the domestic market in 2015-16 as compared to 5,51,463 units in 2014-15. In 2013-14, the figure stood at 634,151 units.

The domestic industry is predominantly dominated by medium horse-power (HP) tractors, with 83% of the total sales being in the 31-50 HP range. The models in this segment witnessed a significant decline in sales, which affected the domestic volume. The 41-50 HP segment continues to remain the most preferred segment, recording 46% of the domestic sales.

As per experts, the demand of tractors in farm as well as non-farm sector has remained weak for the past two years. The demand in agriculture sector was affected due to stressed farm incomes on account of consecutive crop failures for the second consecutive year due to weak monsoon and a modest increase in MSP of various crops. Slow pick-up in infrastructure sector and construction activities affected the demand in the non-farm sector.