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India Ratings and Research (Ind-Ra) in its latest report has said that despite the impact of COVID-19 second wave, tractor sales volume is expected to grow in low-mid single digits of 3-6 percent in 2021-22, mainly on a higher base following the 27 per cent growth witnessed in FY21. It also said tractor sales volume is likely to pick up from the second quarter of the ongoing fiscal as localised lockdowns and restrictions have been relaxed.

Citing data released by original equipment manufacturers (OEMs), Ind-Ra said the tractor industry witnessed a sharp rebound in sales volume in June 2021 despite the second COVID wave had impacted sales in April-May 2021 that resulted in average monthly sales dropping to 76 per cent of the monthly sales achieved in the fourth quarter of the financial year 2020-21.

However, it said given that the first quarter is generally a critical quarter with seasonally higher sales of around 33 per cent, especially in May and June for land preparation for the Kharif season, the sales lost are unlikely to be recovered in the subsequent part of the year. It further said tractor purchase may be deferred in favour of saving for/ incurring higher medical expenses amid the anticipation of a third covid wave.