Escorts tractor volume shoots up by 64.6 per cent month-on-month
Escorts, the world’s largest seller of agricultural tractors and farming equipment, announced its monthly volume sales for June 2020.
The agricultural machinery segment recorded the total sales of 10,851 units with a generous growth of 21.1 per cent YoY, as compared to 8,960 units in June 2019. The month-on-month sales shot up impressively by 64.6 per cent. The sales in May 2020 stood at 6,594 tractors.
The company has seen an exceptional demand this month. The factors like pent-up demand of lockdown period, improved farmer sentiments due to good monsoon predictions, which in turn, reflected in higher Kharif sowing, better rural cash flow and availability of retail finance would help in the growth of the industry.
The domestic sales in June 2020 are at 10,623 tractors, witnessing a growth of 22.8 per cent YoY as against 8,648 tractors in June 2019. The exports in the month of June 2020 have decreased by 26.9 per cent YoY, registering sales of 228 tractors as compared to the sale of 312 tractors in the same month last year.
Given the ongoing pandemic, Government of India (GOI) implemented a nationwide lockdown due to which, the factories after the required permits are being operated in multiple shifts to achieve a production capacity of 90 per cent. The supply chain remains volatile, although it is considerably better than before. As a result of the current situation, the level of inventory has been the lowest with the company as well as with the channel.