Tractor Industry

However, softening prices of inputs such as steel and pig iron will provide a 100-200 basis points (bps) respite to the operating margin of tractor makers

SUV launches getting traction, weak rural demand a headwind for tractors

Favourable agri macros, improving SUV demand, and easing commodity prices augur well for automaker

Its stock price has risen 13.4% this month, against 2.1% fall in BSE Auto index

Sentiments have turned negative due to the persistent rise in cases; farmers are saving cash for health-related exigencies

February 2021 sales were lower compared to January 2021 sales of 87,579 units and production of 96,020 units

According to the Federation of Automobile Dealers Associations, retail numbers for January inicated the only segment which was in green (11.14% growth) was tractors, while other segments were in red

However, month on month the sales dropped for the second month in a row, after reporting continued growth since April

Tractor sales have been growing on a monthly basis since April 2020, except in the month of August

In June, the industry recorded a 22 per cent growth in wholesale volumes and 10 per cent growth in retail volumes

Timely arrival of monsoon, record Rabi crop as well as government support for agri initiatives helped tractor sales grow in an otherwise dull auto market

Prospects of a normal monsoon and an expanded government food programme are helping in a modest recovery

Higher rabi output, no BSVI impact and firm crop prices are positives

To rekindle consumer interest, companies introduce technology and design as brand differentiators, reposition their products and create new categories

The tractor industry has projected a growth of nearly 10% this year after sales had slipped by 10% during 2015 calendar