After two years of strong growth, domestic tractor sales have hit a rough patch. In FY19, the sector witnessed volume growth of 10% (790,000 units) YoY. This comes after stellar growth of 22.1% in FY18 (710,000 units) and 18% in FY17 (580,000 units). Delay in sowing, erratic rainfall and low rabi crop production weakened rural sentiment, impacting tractor sales.
And Escorts, one of the biggest tractor manufacturers, won’t be left unscathed. Management expects worsening sales this year, admitting that the industry will only see 5-8% growth in FY20. Last fiscal wasn’t t