Tractor sales in India, a barometer for the rural economy, have declined for the second consecutive month, mainly due to irregular rainfall, a high base effect, and a delayed festive season. Manufacturers anticipate a sales rebound in November with the onset of Diwali. Despite the recent drop, tractor sales had seen continuous growth in recent years, reaching a record 944,000 units in FY23, a 12% YoY increase.
Tractor sales will be impacted in the short term although in the second half of the fiscal they are likely to pick up, Escorts Ltd Group CFO Bharat Madan said