Car sales gloomy, but tractors zoom

The Indian passenger car industry may be reeling under a prolonged demand slump, but in the farms out there, things have never been better.
By : Hindustan Times
| Updated on: 21 Apr 2014, 14:11 PM
Farming-out-sales
Farming-out-sales
Farming-out-sales
Farming-out-sales

The Indian passenger car industry may be reeling under a prolonged demand slump, but in the farms out there, things have never been better. Thanks to a good monsoon last year that resulted in a bumper crop yield, sales of tractors grew by 20% in 201314 to hit an all-time high of 633,656 units during the year.

Tractors offered the only ray of hope for the beleaguered automotive industry as passenger car sales slumped by 6%, a second straight annual decline, while commercial vehicles — considered to be the barometer of the economy — was the worst hit with a 20% decline in sales to 632,000 units in the fiscal year that ended on March 31.

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"The good monsoon last year and robust rural economy has helped tractor sales," said Pawan Goenka, executive director and president, Mahindra and Mahindra. "Increasing mechanisation in the farm sector is a perpetual trend. What has also helped is the shortage of manpower in farms as farmers buy tractors to offset that."

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The outlook for the industry this fiscal however is not as optimistic. With below average rainfall predicted for 2014-15, sales are expected to grow 8-10%.

First Published Date: 21 Apr 2014, 14:07 PM IST
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