Faridabad: Escorts Ltd Agri Machinery Segment (EAM) in May 2021 sold 6,423 against 6,594 tractors sold in May 2020, a drop of 2.5 percent.
The company’s domestic tractor sales dropped by 4.5 percent to 6,158 tractors as against 6,454 tractors in May 2020. Exports during the month was at 265 tractors against 140 tractors sold in May 2020, registering a growth of 89.3 percent.”
“Our country is going through some tough times and slowdown in demand is seen due to impact of COVID-19 in the rural parts impairing movement of customers and smooth operations of our dealerships. The ground situation has somewhat eased in the last few days of the month, and we expect return to normalcy soon. In the medium term, we see rural sentiment to be strong, on account of all positive macroeconomic factors viz. prediction of a good monsoon, high crop production and better support by Government on crop prices. Inflation continues unabated and remains a worry” the company said.
On the other hand, the company’s construction equipment segment has reported 55 percent rise in monthly sales to 155 machines as against 100 machines in May 2020. The rise in sales is likely due to less stringent lockdown in May 2021 against May 2020.
“ The Industry was majorly impacted due second wave of COVID 19 pandemic, health concerns due to ferocious spread, shifting priority to safety of self & family, poor collections & hence availability of liquidity at various levels leading to low lending and local lockdown restrictions in different states, all this has severely impacted on-ground execution of infrastructure work. In last few days Production is also adversely impacted due to the shortage of certain critical items, including industrial oxygen. We are watching the on-ground situation closely and believe that like last year, going forward industry may see a pent-up demand post monsoon season lead by strong rebound in the road and infra sector fuelled by liquidity infusion by banks and NBFCs. Commodity price rise continues to be worry” said Escorts.