Mahindra tractors see a 20% decline in their sales in May

MUMBAI: In a clear sign that the rural economy may be slowing down Mahindra & Mahindra, saw its tractor sales dropping by a fifth in May this year against the same month last financial year.

Mahindra & Mahindra’s farm equipment sector, a part of the Mahindra Group on Monday said it sold 18,245 tractors in May this year against 23,132 tractors in May 2014, a 20% dip. We have registered a sale of 18,245 units during May 2015. At Mahindra, we have seen a positive trend in our tractor exports which have grown by 25% during the last month. For the tractor industry, the upcoming monsoon will be the primary trigger and we are hopeful of a good monsoon which will have a positive impact on pent up demand thereby leading to improved market sentiments,” Harish Chavan, Chief Operating Officer, Farm Division, M&M said.

The company saw a minor jump in its exports from 808 units to 1012 units. The company also witnessed a dip in the number of tractors sold from April this year to May this financial year as against the same period last year. The company sold 43,027 tractors between April-May last year as against 35,251 units this year, registering an 18% decline.