Escorts Kubota has reported a 2.6% decline in total tractor sales at 9,359 units in June 2024 from 9,850 tractors sold in June 2023.
The company’s domestic tractor sales, however, showed marginal improvement to 9,359 units last month as against 9,270 units sold in June 2023.
The company’s export tractor sales during the month under review were at 234 tractors as against 580 tractors sold in June 2023.
According to the company, the market saw a delayed pick-up in retail season and now the season is expected to continue into larger part of July as well.
“With the monsoon progressing well and continuing government support, including an increase in Minimum Support Price (MSP), we anticipate demand to improve in coming months,” Escorts said in an official release.
Tractor sales dipped in June 2024 due to notable decreases in sales in states like Uttar Pradesh and Maharashtra, where the monsoon has not yet begun, as per a report by Motilal Oswal. It further added that commercial demand has also remained weak in most parts of the country. Inventory levels are now above seven weeks in most regions.
On the construction equipment front, the company sold 440 machines last month as compared to 491 machines in the same month year ago, down 10.4%.
“Construction activities on the ground are currently slow on account of timely and good monsoon progress in the country and also due to formation and stabilisation of Government post elections. However, with the government’s likely continuing thrust on infrastructure development, we anticipate demand to improve post monsoon season,” the company said.