Tractor sales in West, South India outpace North

Vijay C Roy

Tribune News Service

Chandigarh, October 7

Propelled by positive macroeconomic indicators, the western and southern region outpaced northern states in tractor sales in the first six months of the current fiscal. In North — the biggest tractor market in the country — Uttar Pradesh registered a flat growth while Haryana and Uttarakhand witnessed a negative growth of 10% and 33%, respectively. Punjab — a relatively smaller market because of high tractor density — registered a growth of 9%.

Overall, the northern states, comprising Punjab, Haryana, Himachal, J&K, Rajasthan, Uttar Pradesh and Uttarakhand, witnessed a growth of nearly 2% as compared to national growth of 12%.

On being asked about the low growth in sales, especially in Uttar Pradesh and Haryana, AS Mittal, vice-chairman, Sonalika Group, said, “Amid the pandemic, these two markets opened late as compared to the rest of the country. This affected the commutative sales. Moreover, around 30-40% of tractor sales in Haryana are restricted to the commercial segment. As the commercial segment was impacted by the Covid, it also hit the numbers.” The northern states contribute nearly 35% to total domestic sales with Uttar Pradesh, Rajasthan, Haryana and Punjab being major markets.

The cumulative (April-Sept’20) sales in the northern states stand at 1,38,421 units as compared to 1,35,887 units during the corresponding period previous year.

Nationally, the total sales during the period under review was 4,01,911 units in the current fiscal as compared to 3,58,565 units in the same period previous year, witnessing a growth of 12%.

The substantial rise in sale is attributed to increase in sales in states such as Telangana, Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh and Chhattisgarh, leading to double-digit growth.

According to the industry, strong demand momentum was aided by positive sentiments due to good cash flows to farmers, higher kharif sowing and continued higher rural spending by the government and good availability of retail finance.

On the industry outlook, Raman Mittal, executive director, Sonalika Group, said, “We are upbeat about the upcoming festive season and expect farmers’ sentiments to remain positive.”