Escorts Kubota Ltd has reported a 17 per cent decline in total tractor sales at 6,481 units in February 2024 when compared with 7,811 tractors sold in February 2023.
Also read: Domestic tractor sales fall for the second straight month in January
Domestic tractor sales declined to 6,041 units as against 7,245 units sold in February 2023.
Tractor sales dipped in February 2024 due to the continuing impact of an uneven monsoon coupled with insufficient rainfall and diminished reservoir levels which impacted the kharif output, the company said.
Export tractor sales in February 2024 were at 440 as against 566 tractors sold in February 2023.
Anticipated improvements in the rabi harvest and early signs of a normal monsoon next year are projected to enhance overall sentiments and drive an uptick in tractor sales in the next fiscal year, it added.
Rating agency Crisil said domestic tractor volume may report a decline of 4-5 per cent in the current fiscal. However, the industry will post a modest growth of 3-5 per cent in FY25, driven by an expectation of a normal monsoon supporting rural sentiment, higher farm income and good replacement demand.