Tractor Industry Sees Growth After 3 Years 11/10/2007

The tractor industry is finally getting something positive back for efforts. Growth is finally evident for the industry after so long of seeing a continuous decline for the past three years.

"The industry grew by about 2-3 per cent in September after at least three continuous years of losses. The good monsoon this year has lifted sentiments. We are now expecting about 10 per cent growth in the last six months of the fiscal," Mr R.C. Jain, President of the Tractor Manufacturers Association (TMA) and Chief Executive (Group Affairs), Eicher Group, said.

In 1999-200 sales dropped from 2,66,000 units to 1,59,000 units in 2002-03. The economy saw a 26 per cent decline in the tractor industry. Mr Girish Sachdeva, Director (Marketing) for New Holland Tractors India has predicted that the situation will only improve as time goes by.
"Even as September saw good growth for the industry, the sales are likely to peak in the October-November period. This would be a result of the festivals, apart from the fact that agricultural demand usually reaches a high in October."

Agrees Mr L.D. Mittal, Chairman, International Tractors Ltd. "The good monsoon has helped reverse the trend for the industry, specifically in States which were badly affected by the drought last year."

As the industry decreased by approximately 10 per cent in the first six months of the year the turnaround may not be a positive thing for the tractor industry. On a positive note retail sales have improved through out the month. "Movement at the retail level is much better," Mr Jain said.

Inventories have been cleared by the industry which has provided this positive affect. "The inventory levels have declined to 3-4 months from about the earlier 6-7 months. A level of three months is sustainable," Mr Sachdeva said.

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