Sonalika Leads Tractor Exports, Mahindra & Mahindra Eyes Global Expansion Amidst Domestic Tractor Sales Decline

In February, India's tractor exports witnessed a remarkable surge, bouncing back from a year of decline. Data from the Tractor and Mechanisation Association (TMA) reveals that total tractor exports reached 8,487 units last month. This marks a significant 16 per cent increase compared to February 2023 and an 18 per cent rise from January 2024.

Indian tractor manufacturers are finding key markets in the SAARC region and Africa. Sonalika Tractors, a leading exporter, has been distributing its products globally. In February, the company reported a substantial 30 per cent growth in exports, solidifying its position as a major contributor to India's tractor exports. Sonalika Tractors now holds over a third (35 per cent) of the market share, up from 28 per cent a year ago.

Mahindra & Mahindra, another prominent player, has identified the US as its second-largest market after India. Alongside exports to SAARC nations and Africa, the company aims to expand its reach with the introduction of its new tractor series, Oja, in various international markets.

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Domestic Market

While exports boom, the domestic tractor market faces challenges. Domestic sales touched a four-year low in February, with only 43,277 units sold compared to 62,367 units in the same period last year. Total tractor production also witnessed a decline, standing at 71,607 units in February compared to 82,874 units a year ago.

Industry experts attribute this decline to various factors. Economic crises in countries like Sri Lanka and recovery phases in nations like Nepal have been driving export growth. However, the domestic market is grappling with its own set of challenges, resulting in decreased sales and production figures.

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Sonalika Tractors' significant growth in exports contrasts with Mahindra & Mahindra's performance in the domestic market. While Mahindra & Mahindra recorded a notable 32 per cent increase in tractor exports in February, their total exports for the fiscal year's 11 months saw a decline compared to the previous year.

As the industry navigates through fluctuations in domestic and international markets, companies like Mahindra & Mahindra are gearing up for expansion. With plans to introduce new tractor series in various international markets, there's optimism for future growth despite the current challenges faced by the domestic market.

While India's tractor exports show resilience and promise, the domestic market is experiencing a downturn. Industry players are strategizing to overcome these challenges and drive growth in both domestic and international markets, aiming to sustain India's position as a key player in the global tractor industry.

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