M&M had posted domestic tractor sales of 24,017 units in May versus 4,716 units in April
After economic activity resumed during a phased manner on the lifting of lockdown restrictions because of the novel coronavirus, or COVID-19, pandemic, tractor sales and production saw a robust recovery in May.
Total tractor sale volumes in May stood at 64,860 units, including exports of 4,419 units, BusinessLine reported.
This is a pointy increase from total sales (including exports) of 35,216 units in March and 12,256 units in April.
Tractor production stood at 30,751 units in May as against 39,200 units in March and 158 units in April, the report said, citing data from the Tractor & Mechanisation Association.
The Centre eased restrictions in May and permitted all manufacturing activity to resume with certain guidelines for health and safety.
"Timely relaxation of the lockdown for the agricultural sector helped ensure speedy recovery of tractor demand in May. within the near term, farmer sentiment is probably going to stay positive," Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra (M&M), told the publication.
M&M, India's largest manufacturer of tractors, had posted domestic tractor sales of 24,017 units in May versus 4,716 units in April.
Sonalika Tractor, which was operating at 20-25 percent capacity in May, reached 80 percent within the fourth week of the month, the report added. the corporate is predicted to work at 100% capacity utilisation in June.
"In the present scenario, it's expected that each one the financial institutions would be very aggressive in tractor financing since the agricultural industry is predicted to grow compared to other automobile segments," Raman Mittal, executive, Sonalika Group, told the paper.
"Favourable monsoon, the government's support for agriculture operations and availability of financing have led to week-on-week delivery growth in May and that we expect the expansion momentum to continue this month also ," Mittal added.