Tractor sales during this year’s festive season, spanning September to November, are projected to grow by 8-10%, driven by improved market sentiment following a good monsoon, according to Bharat Madan, Whole-Time Director and CFO of Escorts Kubota Ltd.
Speaking to PTI, Madan noted that after a subdued first half of the fiscal year, the tractor industry is anticipated to gain significant traction in the latter half, potentially achieving double-digit growth. This recovery is expected to result in mid-single-digit growth for the full fiscal year.
“For the festive season months—typically September to November—we anticipate an 8-10% increase compared to last year,” Madan said, emphasizing the importance of this period, which contributes around 40-45% of the industry’s annual sales. He estimated that this year’s festive season would see sales volumes reaching approximately 325,000 units.
Highlighting the sales trends, he added, “Unlike previous years, September was a softer month since most festivals were concentrated in October. This led to an exceptionally strong October in terms of retail sales, with wholesales also performing well. The positive impact of these trends will likely reflect in Q3 results.”
Madan attributed the rebound in sales to favorable monsoon conditions, which boosted confidence among farmers. “September saw most of the stocking by channel partners, followed by robust retail sales in October, which recorded growth exceeding 50%—a very encouraging sign,” he explained.
Looking ahead, Madan stated that while the first half of FY25 had been relatively flat, the second half is poised for double-digit growth. This should enable the tractor industry to close the fiscal year with mid-single-digit overall growth. (PTI)