Despite low rainfall in major parts of the country this year, leading tractor manufacturers in India are expecting a sales boost during the Diwali festival. As Monsoon has got peak in northern states of the country since the end of August, it has pumped a hope for sales hike of farm machineries.
According to the sources in India Meteorological Department, during the past few years, the withdrawal of Monsoon has commenced in mid-September. This year the withdrawal is expecting to be more delayed in the north western region of the country, impacting a positive impact on agriculture production. It has given a positive sign in agriculture production and has raised hopes for tractor manufacturing companies.
According to the sources in tractor major Escorts, the company expects to sale 10,000 tractors in September and 13,000 tractors during Diwali across the country. The last year’s Diwali sales of Escorts was 8,000 tractors.
In 2013, during Diwali, Mahindra Tractors sold around 1,000 tractors in Bihar and Jharkhand, 700 alone on November 1, 2013, on the day of Dhanteras in Bihar and 101 in Jharkhand. Kishlay Kishor, assistant area manager for institutional sales in Bihar and Jharkhand, Mahindra Tractors says, “Every year on Diwali, our stock gets short due to increasing demand. And therefore, this year we are planning to increase our stock by 20 percent from the last year sales after a district wise survey.”
Mahindra Tractors expects a boost in Diwali sales. The company sees a negative sentiments due to late Monsoon, but does not see any impact on sales. Countering the impact of weak Monsoon, Kishor says, “We are going to deliver below 40 HP tractors to the the farmers on Rs 110,000 only while we will arrange rest of the fund on interest free loans.”
According to him, Monsoon is not going to affect Mahindra’s tractor sales. Citing an example, he says, “We delivered 200 tractors to the farmers on August 26, 2014 in a gathering of 1000 farmers at the campus of Bihar Agriculture University in Bhagalpur in a single day.”