Tractor sales rise 50% in April-June

Tractor sales in India surged 49.7per cent in the first quarter of 2004-05 (April-March) due to good rabi crop production and availability of cheap loans. Sales rose to 58,449 units during April-June from 39,045 units a year ago, according to data released by the Tractor Manufacturers Association.

Tractor sales in 2004-05 are projected to grow by 16per cent to 220,000 units from 190,000 units last year, Tractor Manufacturers Association president R C Jain told Crisil MarketWire.

He attributed the growth in April-June sales to a "feel-good factor" among farmers following a good rabi crop and availability of easy finance.

"The base was also low last year due to bad sentiments as there was a poor kharif and rabi crop after the drought in 2002," Jain said.

In April-June, sales of market leader Mahindra and Mahindra Ltd. jumped 60 per cent to 16,052 units, while that of Escorts Ltd. grew 35 per cent to 8,313 units.

Sales of Punjab Tractors Ltd. rose 40 per cent to 7,419 units and that of Eicher Ltd. climbed 46 per cent to 4,190 units. Tractors and Farm Equipment Ltd. clocked a 53 per cent growth to 8,245 units, while that of Bajaj Tempo Ltd rose 42 per cent to 910 units.

HMT Ltd and L&T-John Deere Pvt Ltd recorded a 28.4 per cent and 80 per cent rise to 1,541 and 3,274 units, respectively. "The growth in the July-September quarter should be around 15 per cent as the second quarter is never great," Jain said.

"In the second half (October-March) of this fiscal, we expect sales to be 8 per cent more than the previous year, as the monsoons had got delayed and there was a good growth last year which had increased the base," he said.

India is the world's largest tractor market, followed by the US and China. The local market comprises 12 manufacturers, including foreign players like John Deere and New Holland Tractors.