SUVs to tractors: M&M not taking foot off pedal, on recovery road

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

The automotive industry had a difficult time since the pandemic. While supply-chain issues have persisted, the boom in commodity prices led to higher raw material costs as well. In addition, weak rural and semi-urban demand led to downturn in domestic tractor and two-wheeler sales.

The first quarter of 2022-23 (FY23) has seen more optimism across the sector. The tractor segment in particular could see revival in demand and better volumes.

Automobile companies are still suffering from chip-sourcing issues which exacerbated after the Russia-Ukraine stand-off, but expect these shortages to start easing in the second half of the financial year. Commodity