Indian Tractor Industry records 12% growth in domestic tractor volumes in FY23

New Delhi, Apr 11 (KNN) The Indian tractor industry recorded a 12 per cent growth in domestic tractor volumes with 945,311 units in FY23 compared to 842,266 in FY22, according to Tractor & Mechanization Association (TMA).

The tractor industry produced over a million units for the first time ever and achieved the highest ever domestic sales in FY23.

Domestic tractor sales surged by 19 per cent in Q4 to 210,858 units, up from 177,608 units in Q4 FY22. In March alone, sales reached 82,856 units, surpassing 72,888 units in March 2022, while production stood at 83,948 units.

According to Mallika Srinivasan, Chairman & Managing Director of TAFE (Tractors and Farm Equipment), there was strong demand due to favourable agricultural conditions and good prices for farmers. However, inflation issues were a challenge throughout the year.

Rohan Kanwar Gupta, Vice President & Sector Head, Corporate Ratings at ICRA said the domestic volumes of 9.45 lakh units in FY23 marked the highest-ever for the industry.

Gupta attributes the growth to a rise in wholesale volumes during Q4 FY23 as original equipment manufacturers (OEMs) stocked up on inventory in preparation for strong rabi season sales.

As per reports, during FY23, Mahindra & Mahindra experienced a 16 per cent increase in domestic volumes, with 389,531 units sold. Escorts Kubota Ltd saw a 9.4 per cent growth with 95,266 units sold, while Sonalika Tractor's domestic volumes grew 15 per cent to 116,000 units sold.

The country produced a total of 1,071,310 tractors in FY23, showing an increase from 9.61 lakh in FY22 as well as in FY21. Exports, on the other hand, decreased slightly to 124,542 units in FY23 from 128,636 units in the previous fiscal due to lower demand.  (KNN Bureau)