By Abhiraj
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Some of the positive signs that Mahindra pointed out include higher mandi prices for key crops and a decline in farm input inflation that influenced higher farm profitability.
Mahindra and Mahindra, the leading tractor manufacturer had predicted that they could achieve sales of 9 lakh units by the end of the year.
From 2022-23, the sales figure was 7.60 lakhs in the fiscal year 2022-23.
The Indian Tractor industry had witnessed a 5% decline in sales due to the agricultural slowdown. Some factors responsible for the slowdown include delayed harvesting, lower rabi sowing, and negative farm sentiments.
Mahindra and Mahindra, the leading tractor manufacturer had predicted that they could achieve sales of 9 lakh units by the end of the year. It's something less than the sales of 9.45 lakh units within the fiscal year 2022-23.
Despite the industrial slowdown, the brand still gained an increase in market share from 41% to 48% in the market of Indian Tractors. From 2022-23, the sales figure was 7.60 lakhs in the fiscal year 2022-23. It was less than 8 lakh units achieved in the previous fiscal year.
Official Statement from the Brand
Rajesh Jejurikar, Executive Director and CEO of the Auto and Farm Sector at M and M made an anticipation of a 10 percent decline in sales that one could witness by the end of the year. Mahindra and Mahindra projected profits of 8600 crores in the third quarter.
Unexpectedly, there was a 4% decline in the Profit after tax that led to a shift in the revenue from farm business to rs 898 crores after the deduction in the profit after tax.
Hemant Sikka, President of the Farm Equipment Sector at M&M said that they can achieve sales of 9 lakh units this year. According to him, Fiscal Year 2025 is an optimistic year for the brand for its progress in sales. Furthermore, he highlighted normal monsoons as a factor for positive growth. He mentioned the same after he spoke about the increase of 26% in sales during the previous fiscal year.
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Rise in the Farm Wage Growth during 2023
There has been lesser demand for tractors in the southern states in contraction to Punjab and Haryana which witnessed massive demand for the tractors. Some of the positive signs that Mahindra pointed out include higher mandi prices for key crops and a decline in farm input inflation that influenced higher farm profitability.
Considerably, there was an increase in the farm-wage growth in 2023 between July and October that was more than the non-farm-wage growth. The increase in farm wage growth is a positive sign of rising farm income.
Our take on the Agricultural growth
There has been negative growth in the farm sector due to less focus by the Government on the rural sector. However, the increase in the farm-wage growth would influence the farm income and the increase in the sales of tractors.