Mahindra & Mahindra's Farm Equipment Sector (FES announced its tractor sales numbers for May 2020. The company sold 24,017 units, as against 23,539 units during May 2019. This marked a jump of 2 per cent in sales in the domestic market. It comes as a breath of fresh air, that Mahindra's tractor business has really picked up in the country, given that the entire country was under lockdown. The total tractor sales (Domestic and Exports) in May 2020 stood at 24,341 units, as against 24,704 units for the same period last year.
Dr. Pawan Goenka, Managing director, Mahindra and Mahindra was quick to acknowledge this hike in sales in what is a pretty gloomy time for the auto industry on the whole. He took to Twitter, to express his elation and said, "In the midst of all the gloom and doom in the economy, nice to see that the tractor industry had a small growth this May compared to May last year. May be Bharat will carry India."
In the midst of all the gloom and doom in the economy, nice to see that the tractor industry had a small growth this May compared to May last year. May be Bharat will carry India. @MahindraRise @PMOIndia @amitabhk87— Pawan K Goenka (@GoenkaPk) June 1, 2020
The fall in exports were the dampner to this positive story, which clearly lifts the spirits of the industry and tells us that the auto industry is far from done and dusted. Mahindra exported 324 units of tractors, compared to 1165 units in the same period last year registering a drop of 72 per cent.
Mahindra has been making strides in the Tractor business, Dr. Goenka recently revealed the company's autonomous tractor
Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd. said, "In the near term, farmer sentiment is likely to remain positive due to several developments including robust Rabi crop production, higher procurement, good price realizations and the forecast of a normal monsoon that bodes well for a good Kharif crop. All these augur well for tractor demand going forward. In the exports market, we have sold 324 tractors".
An interesting perpective here was that Mahindra sold more tractors in May than passenger vehicles in the country in the same month. We'd already told you that last month, the Hyundai Creta was the best selling car in the country selling 3212 units, but it's clear that the agricultural sector has provided the much needed boost to the auto industry overall.