El Nino unlikely to dampen tractor industry volumes in a big way

Likely El Niño may water down sentiment but industry does not see huge downside in sales in FY24

The tractor industry volumes are likely to remain healthy, even as an El Niño occurrence may materially impact monsoon precipitation and dilute farm sentiment.

After touching an all-time high of 945,000 units in 2022-23 (FY23), the industry growth rate, however, is likely to moderate. Industry volumes grew 12 per cent year-on-year (YoY) in FY23. In its April report, rating agency ICRA noted that the industry’s wholesale volumes remained at healthy levels.

“The wholesale volumes over September-November represented healthy growth, with original equipment manufacturers building up dealer inventory to cater to strong demand during the festival season. With retail sales during