Tractor sales to pick up from October: Escorts
Kolkata: Tractor sales, which have been flat for about six months due to a delayed monsoon, are expected to pick up from October following recent rains, agri-machinery maker Escorts said Wednesday.
"If you look at total tractor market size, there has been a temporary slowdown in the market because of the delayed monsoon. More or less on an average, India has had a flat tractor market over the last six to seven months," Escorts Agri Machinery marketing head Shenu Agarwal told reporters here.
"But as the situation is improving and we are seeing rains now, the water level is coming up. Now the sentiments (of the farmers) are up. So we think that the situation will change soon. The market should go back to normal 8-10 percent growth level from October," Agarwal observed.
At present, the total size of the tractor market in India is about 5.30 lakh units.
Agarwal said the tractor market would witness a "temporary slowdown" if the government goes ahead with a diesel price hike.
"It (diesel price hike) will affect sales if the government decides to hike diesel prices or remove subsidies to some extent. However, we think that it will be a temporary slowdown as the farmers will have to have tractors. There is no alternative," he said.
"The input cost will go up (if fuel prices rise) and therefore it is up to the companies to further improve fuel efficiency of engines so that the customers do not feel the pinch," he said.