Mahindra & Mahindra and Escorts Kubota See Growth in Domestic Tractor Sales Despite Export Challenges
In September 2024, Mahindra & Mahindra’s domestic tractor sales grew by 3%, reaching 43,201 units compared to 42,034 units in the same month last year. However, the company’s tractor exports declined, with 1,055 units exported this year, down from 1,176 units in September 2023. Overall, Mahindra & Mahindra’s tractor sales increased by 2%, totaling 44,256 units compared to 43,210 units last year.
Hemant Sikka, President of the Farm Equipment Sector at Mahindra & Mahindra Ltd., stated, “We have sold 43,201 tractors in the domestic market during September, a growth of 3% over last year. Monsoon rainfall has seen an increase of 7.5% over LPA and this has helped increase in Kharif sowing of all crops except cotton. Reservoir levels have recovered very well and are now at 13% higher than LPA, which augurs very well for a bumper Rabi crop. On the back of good Kharif crop and likely strong Rabi crop, rural sentiments are positive. With positive terms of trade for farmers and upcoming festivals, we expect robust demand for tractors going forward. In the exports market, we have sold 1,055 tractors.”
Meanwhile, Escorts Kubota Limited’s Agri Machinery Business Division also reported positive growth for September 2024. The company sold 12,380 tractors during the month, reflecting a 2.5% increase from the 12,081 units sold in September 2023. The growth was primarily driven by strong domestic performance, where the company registered a 5.7% increase in sales, selling 11,985 tractors in the domestic market in September 2024, up from 11,334 units last year.
Escorts Kubota commented, “With timely, widespread and above average monsoon leading to replenished water reservoir levels and favorable terms of trade, we anticipate good sales growth during the second half of the current fiscal year.” However, the company’s export tractor sales saw a significant drop, with 395 units exported in September 2024, compared to 747 units in September 2023.
Both companies exhibited growth in domestic tractor sales but faced challenges in the export market.
Doubts Revealed
Mahindra & Mahindra -: Mahindra & Mahindra is a big company in India that makes cars, tractors, and other vehicles.
Escorts Kubota -: Escorts Kubota is another company in India that makes tractors and other farming equipment.
Domestic tractor sales -: Domestic tractor sales mean the number of tractors sold within India.
Exports -: Exports are goods that are sold to other countries.
Units -: Units here mean the number of tractors sold.
September 2024 -: September 2024 is a month and year in the future when these sales numbers were recorded.
3% -: 3% is a way to show how much something has increased or decreased. Here, it means Mahindra & Mahindra sold 3% more tractors in India compared to last year.
5.7% -: 5.7% is another percentage showing how much Escorts Kubota’s domestic sales increased.
