While Covid-19 pandemic continue to seriously impact the auto industry sales in July, the tractor segment has appeared as an exception. Rural market continued to point out robust growth because of a decent monsoon. Tractor sales stayed positively impacted with the monsoon progress and spread. Riding high on back of fine monsoons, favourable Kharif season and improved disposal income within the rural areas mainstream Original Equipment Manufactures OEMs registered high double-digit growth in July 2020 sales.
One of the key reasons for improved tractor sales in July was the first arrival of monsoon this year. Last year also, the country had seen normal monsoon across most parts of the country. things is analogous this year likewise. Such positive developments have enhanced consumer sentiments in rural areas, leading to improved sales of tractors.
Favourable policies for farmers like loan waivers and better prices for crops announced by central and state governments have also heartened spending in rural areas. Favourable policies for farmers such as loan waivers and better prices for crops announced by central and state governments have also heartened spending in rural areas.
Mahindra Tractors recorded its best-ever August sales, as distributions of Tractors rose to 38.87% over the year ago to 18607 units. the corporate had sold 13,399 units in August 2019 and 13,399 units in July 2020. 955 tractors were exported.
Mahindra Swaraj sold 12,249 units in July. As compared to eight,290 units sold in July last year, YoY sales have enhanced by 47.76%. Market share takes improvement by 1.15%. Taken together, M&M and Mahindra Swaraj command a market share of over 40%.
TAFE Limited with 9,579 units sold in July. YoY sales growth is 47.37%, as compared to six,500 units sold in July last year. Market share is 12.57%, an improvement of 0.86%.
Sonalika sales higher but market share slips Sonalika takes the fourth spot, registering sales of 8,989 units in July. YoY sales have improved by 26.02%, as compared to 7,133 units sold in July last year.
Escorts sold 8,781 units July. Sales have nearly doubled as compared to 5,988 units sold in July last year. Market share has improved from 10.78% to 11.52%.
This Shows how Indian Rural Economy is important in running the Auto Sector and driving this sector in pandemic where other sectors where struggling lots.
Mahindra & Mahindra Share price also Rose from Rs 300 in April to 650 in August giving 105% Returns.
Escort Share Price of Rose from Rs 600 in April to Rs 1200 in August i.e. 100% in 5 months.
According to experts a decent monsoon, better minimum provision prices and reverse migration of farm labour were the factors behind the expansion.