Mahindra Farm Equipment has recorded a sales growth of 65 per cent in August 2020 at 24,458 units as compared to 14,817 it sold in the same month last year. The company's domestic sales in the same month went up by 69 per cent at 23,503 units as compared to 13,871 units which were sold in the same month last year. In the same month, its exports increased marginally by 1 per cent at 955 units as compared to 946 units which were shipped out in August last year.
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Tractor sales in general have picked up in the last three months owing to a good Kharif season.
In fact, the GDP growth of 3.4 per cent in India's agriculture sector in Q1 has aptly reflected in Mahindra's tractor sales as well. Despite the coronavirus crisis, in June 2020, farm equipment sales went up by 10 per cent to 36,544 units and in July it recorded an uptick of 27 per cent in July 2020 at 25,402 units. The positive growth is primarily attributed to the increase in Kharif sowing area due to a good harvest season and bountiful monsoon, leading to good rural cash flows. That said, a comparatively low base in 2019 has also added to the percentage increase.
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Mahindra Farm Equipment recorded a growth of 65 per cent in August 2020.
Commenting on the performance, Hemant Sikka, President - Farm Equipment Sector, Mahindra said, "We have sold 23,503 tractors in the domestic market during August 2020, a growth of 69 per cent over last year. On the back of highest ever sales in July, we have clocked yet another highest ever sales in August. The Tractor industry growth continues to remain strong in August. This is primarily on account of continued positive sentiment, due to increase in Kharif sowing area, thereby indicating a bumper harvest, bountiful monsoon, good rural cash flows. We expect rural sentiments to remain positive and translate into robust tractor demand as we move into the festive period." However, Mahindra Farm Equipment's cumulative sales from April to August 2020 have witnessed a decline of 5 per cent at 1,15,517 units as compared to 1,21,159 units sold during the same period last year.
