After reporting degrowth for a year, tractor exports from India reported a positive year-on-year (y-o-y) growth in February this year. But the domestic market registered the lowest monthly volumes in the last four years.
Total tractor exports stood at 8,487 units last month compared with 7,306 units in February 2023 and 7,185 units in January this year, posting a y-o-y increase of 16 per cent and a month-on-month increase of 18 per cent respectively, according to the data provided by the Tractor & Mechanisation Association (TMA).
Some of the key export markets for Indian tractor makers include the SAARC region and Africa. However, the country’s top tractor exporter Sonalika Tractors ships its tractors to numerous countries across the world. For the domestic major Mahindra & Mahindra, the US is the second largest market after India, while it also exports to SAARC nations and Africa.
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While Sri Lanka, which was reeling under economic crises, has shown improvements in tractor sales, Nepal has also been recovering from a slowdown phase, according to industry representatives.
In February this year, Sonalika Tractors’ exports grew 30 per cent at 2,811 units (2,160 units). Now, the company accounts for more than one-third (35 per cent) of India’s tractor exports, up from about 28 per cent a year ago.
During the 11 months of this fiscal, the company’s total tractor exports were at 30,489 units (31,960 units).
Mahindra & Mahindra reported a 32 per cent increase in its tractor exports at 1,551 units in February this year (1,172 units). For the 11 months of this fiscal, Mahindra’s tractor exports stood at 12,112 units (16,622 units).
The company is looking to boost its exports by entering into new markets with its new tractor series Oja, which has been introduced in India. The Oja will be launched in North America, ASEAN, Brazil, Australia, South Africa, Europe, and the SAARC region. Oja tractors will also make its debut in the ASEAN region, starting with Thailand this year.
Total tractor sales in the domestic market stood at 43,277 units in February this year (62,367 units) and 55,589 units in January 2024. Total tractor production was also lower at 71,607 units (82,874 units) and 74,895 units in January 2024.
In the 11-month period of this fiscal, the total domestic tractor sales were lower at 8.03 lakh units (8.62 lakh units).