On a bumpy ride: Demand for low-cost tractors hits margins in June quarter

Margins of most tractor makers took a knock in the quarter ended June as farmers opted for cheaper, low-horsepower (HP) models.  This is despite volumes touching a record high.

With inflation unlikely to cool off any time soon, demand for cheaper tractors is likely to continue in the months ahead, according to industry representatives. In fact, the trend could accelerate once the new emission norms for tractors —TREM IV — take effect from October, said Raman Mittal, joint managing director, Sonalika Tractors.

“With the new regulations, tractors will have to move to CRDi technology, which is likely to make them expensive by