by The slowdown in agricultural activity, which is being caused by a delayed harvesting season and decreased rabi planting, is expected to cause the tractor industry to complete the fiscal year with a 5% decline in volumes over the previous year.
In contrast to the 945,000 units delivered in 2022–2023, Mahindra & Mahindra, the leading tractor manufacturer in India, predicted that the year would close with sales of about 900,000. Although the market was slowing down, M&M managed to increase its share from 41.8% in Q3FY23 to 41.8% today, commanding a 41.8% stake in the tractor market in India.
Total domestic tractor sales during the April–January 2022–2023 period were 760,000, down from 800,000 during the corresponding period of the previous fiscal year.
The media was informed on Wednesday by Rajesh Jejurikar, Executive Director and Chief Executive Officer (Auto and Farm Sector), M&M, that the tractor industry is expected to have a 10% fall in sales during the fourth quarter. The demand for tractors is not doing well in the southern states, but it is expanding more quickly in regions like Punjab and Haryana.
In Q3FY24, M&M’s total farm revenues remained unchanged at Rs 8,600 crore, while the farm business’s Profit After Tax (PAT) decreased by 4% to Rs 898 crore.Volumes of 900,000 for the entire year are not particularly poor, according to Hemant Sikka, President, Farm Equipment Sector, M&M, and the outlook for FY25 is not terribly bleak. The current prediction is for normal monsoons, which would not necessarily mean a particularly bleak prognosis for FY25. 900,000 units is not a bad number on that high base—as an industry, we gained by 26% the year before,” Sikka told Business Standard.
The government’s poor Q3FY24 spending on agriculture and rural development, coupled with the unpredictability of weather patterns that negatively affected kharif output, have resulted in low agricultural sentiment. The rabi sowing has progressed slowly, and the mandi arrivals from the kharif season have been modest, indicating a general decrease in farm productivity.
Higher mandi prices for important commodities and a decrease in the inflation of farm inputs were two of the positive indicators of agricultural profitability, according to M&M. Farm revenue has increased since July 23 because farm wage growth outpaced non-farm wage growth during that time.Mahindra & Mahindra (M&M) announced on Wednesday that they have no intention of raising capital for Mahindra Electric Automobile (MEAL), their subsidiary that manufactures four-wheeler passenger electric vehicles. The managing director and managing director (CEO) of M&M, Anish Shah, stated, “The auto industry is experiencing tremendous growth.” It is producing the money required for investments in the electric vehicle industry (EV). In the future, we plan to increase our investments in the EV industry.
He continued, “MEAL is positioned well and does not currently require external investments.” Early in 2025, MEAL plans to introduce its new car on the born-electric vehicle platform.Temasek Holdings, an investment company based in Singapore, said in August of last year that it will invest Rs 1200 crore in MEAL at a $9.8 billion valuation. At a valuation of Rs 70,070 crore, British International Investment (BII) has already invested Rs 1925 crore in 2022.
