The year 2020-21 has been a great year for the tractor industry as the overall tractor sales went up from 7,85,059 to 9,88,043 this year including an incline in domestic sales by 26.9% and in exports by 16.4% when compared with the year 2019-20. This incredible growth resulted in total domestic sales of 8,99,480 and export of 88,563 tractors as well as it also brought an overall increment by 25.9% during 2020-21 when contrasted with 2019-20.
The Tractor Industry in India also suffered in FY2020 due to economic slowdown, unusual monsoons last year and the Covid19 outbreak. The Industry registered a YoY degrowth of -10.1% in FY2019-20. The tractor sales in India decreased only in April 2020 due to lockdown restrictions. The financial year’21 was tough during the first 2 months as sales dropped by 80% in April 2020 due to nationwide lockdown but post-lockdown phase saw a gradual demand recovery in all vehicle segments, tractor sales, which depend on a strong rural economy, remained robust.
The Indian agricultural tractors market is projected to witness a CAGR of 4.5% over the period (2021 - 2026). The overall yearly tractor sales recorded a boom of 26.86%. A growth displayed in comparison to the previous year as Apr’20-Mar’21 tractors sold 899429 units against 709002 units.