Domestic tractor sales trend to be sluggish in Q1, 2020-21

The last financial year 2019-20 was a very challenging for automobile industry. Similarly, it was a very tough year for the domestic tractor industry too. The tractor industry declined by 9.8% to sale 7,09,002 units in FY 2019-20 compared to 7,86,381 units in FY 2018-19. The tractor industry registered a sharp fall after witnessing a three consecutive years of double digit growth. Tractor industry recorded growth of 18.0%, 22.1% and 10.5% in FY 2016-17, FY 2017-18 and FY 2018-19 respectively before witnessing the sales drop in FY 2019-20. Several factors like slugging rural economy and discontinuation of subsidies coupled with nationwide lockdown due to corona virus have led the industry to fall. Rather than setting  the year FY 2019-20 to close in a flying colour, March 2020 registered a downfall of huge 43.5% to sale 35,216 tractors compared to 62,315 tractors in March 2019. And the dwindle trend is likely to be continued in the first quarter of FY 2020-21 due to nationwide lockdown as an effective measure of corona virus. Market leader Mahindra & Mahindra (M&M) has reported domestic sales decline by 83% to sale 4,716 units in April 2020. The tractor industry expects to recover in the second half of the ongoing financial year.

Domestic tractor sales trend to be sluggish in Q1, 2020-21