Mahindra & Mahindra leads the rally with the highest market share
Tractor sales are booming. In October 2022, Indian tractor sales hit an all-time high of 1,32,413 units (including exports) beating the last all-time high of 1,27,809 units recorded in October 2021. While exports were laggard, posting a 27 per cent YoY decline, domestic tractor sales hit an all-time high of 1,23,525 units, a 7 per cent growth YoY compared to its previous high of 1,15,615 units in October 2021.
This growth is surprising as the market predicted this season to be muted. The highest growth achieved in an October in the last five years was in 2019 at 9 per cent. However, to those who were looking, the macros were already giving signs of a rally in tractor sales.
First was the increase in minimum support prices (MSP) for all rabi crops on October 18, 2022. Second, India also witnessed a relatively healthy monsoon this year. In fact, tractor registrations during this festive season were up 66 per cent as compared to 2021 and also beat its pre-COVID level of 34 per cent. Since tractor sales are seasonal, higher sales can be expected in March and June 2023.
The biggest beneficiary
While the tractor segment has many heavy hitters, such as Sonalika, Escorts, Eicher and John Deere, the market leader title has again been claimed by Mahindra & Mahindra. In October 2022, it recorded its highest-ever sales of 51,994 units, beating its previous high a month ago. In the first half of the financial year 2023, it captured a market share of 38.3 per cent and has a market share of 37.4 per cent as of November 2022. Since 2018, its median monthly market share has stood at 37.5 per cent, with the lowest being as high as 27.9 per cent!