NEW DELHI: Tractor sales volumes are expected to grow in the range of 3-6 per cent in 2021-22, despite the impact of the second wave of COVID-19. The reason for this single digit growth is the high base figure due to sales of 27 per cent in FY 2021-22. Rating agency India Ratings and Research (India Ratings and Research/Ind-Ra) gave this information on Thursday.
India Ratings said in a statement that tractor sales are likely to increase from the second quarter of the current financial year as localized lockdowns and restrictions are eased. “The macroeconomic tailwind for the rural economy remains mostly intact, including a normal monsoon forecast, expectations of a strong kharif crop and improving rural incomes,” it said.
Citing data released by Original Equipment Manufacturers, the agency said that the tractor industry has June 2021 saw a huge jump in sales volume, while the second Covid wave impacted sales in April-May 2021, resulting in a 76 per cent drop in monthly sales against the monthly sales average in the fourth quarter of FY 2020-21 .
According to the report, tractor purchases can also be postponed due to high medical expenses amid anticipation of the third Kovid wave. It said, “If a third wave is observed in the country, which is as severe as the second wave and results in a local or national lockdown, there may be a stagnation in growth on a year-on-year basis.” ‘