It’s not that the lockdown spared the tractor market. From a high of 64,937 units in February, sales slumped to 35,216 in March, and 12,456 in April. But then, May saw 64,860 tractors sold — a shade higher than the 64,514 sold in May last year.
June has been another good month with 23% sales growth over June 2019, and as demand remains strong, manufacturers are not worried about unsold tractors but the shortage of parts and labour, Hemant Sikka, president, farm equipment sector at M&M, told TOI.
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Demand for tractors is holding up because “rural population is comparatively not affected by the pandemic,” said T R Kesavan, president, Tractor Manufacturers’ Association. Sikka said April-June is the traditional season for tractor sales, and this year, despite the lockdown, “timely monsoon, a record rabi crop, government support for agri-initiatives and good sowing of kharif crop have led to positive sentiments.”
Sonalika group executive director Raman Mittal said a high level of vertical integration at their plant has helped them bounce back faster. The company’s market share increased to 15.4% in June with sales of 13,691 units.
Two wheeler sales have also shown a sharp, if not spectacular, recovery. They are now at 60-80% of the pre-lockdown level, thanks to strong demand in rural areas. “A major part of the demand is from rural and semi-urban markets, which have been helped by various government stimulus packages,” A Hero Motocorp spokesperson told TOI.
A report by equity research firm Emkay Global Financial Services says the marriage season in states like UP, Rajasthan and Bihar has also propped up demand.
While two wheeler sales in June were below last year’s level (see graphic), the good news is they have rebounded from the lockdown levels. Hero Motocorp, for instance, saw its sales quadruple from 112,682 units in May to 450,744 units in June.
A Royal Enfield spokesperson said their bookings are at the pre-lockdown level. “Within a period of two months, there is business recovery of approximately 60%.”
(This story is part of a series in association with Facebook. Facebook has no editorial role in this story.)
