Tractors sale down – Mahindra and Mahindra faces 83% sale drop
Corona’s effect on tractors sale
Diseases affect humans and threaten their life. But, Corona shows its presence even to the economies by affecting the economic health. It majorly affects the tractors sale by 83% for Mahindra and Mahindra. As per Mahindra and Mahindra, the number of units sold has been declined by 4772 units.
Mahindra and Mahindra is one of the leading automobile manufacturers whose revenue is around INR 105806 crores in 2019. But their growth story faced some twists and turns in early 2020 as corona plays a villain role effectively in their growth story. Most of the industries are now facing a drastic revenue drop because of this lockdown. So, M&M is also not an exception in this case. While corona cases are inclining in the graph, the sale of M&M continues to decline. Let us briefly see their sale numbers.
As per the company, they sold 27,495 units in April 2019 which was now drastically affected by the lockdown. It affects both international and domestic tractor sales. Total tractors sold in the domestic market was 4716 units in April 2020, which is 83% lesser than April 2019 sale of 27495 units.
In International markets, 95% drop was recorded as only 56 units sold last month while compared with 1047 units last year. Mahindra and Mahindra’s president Mr Hemant Sikka commented that the continuous extension of the national lockdown impacted their business, as their dealers partially open only for a few days.
On outlook magazine, he told that some positive factors such as good rabi output, the opening of procurement centres by government, a sign of good crop prices, the level of reservoirs etc., may create a good demand for tractors. He also told that the improvement rates depend on the quick on ground sale operation, which also includes the normalized start of NBFCs after the lockdown has been relaxed.
Even Hemanth Sikka shows his positive viewpoints, we can wait for a few months to see the actual results in the market.
You can post your views about the expected growth of tractor sale post-Covid-19 in the comment box.
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