Auto Sales In June 2020: Escorts Tractor Sales Rise 21.1% To 10,851 Units
Indian automakers are reporting their sales data for June today, amid supply-chain constraints emerging out of the recent India-China border conflict and lingering effects of a lockdown.
Factory-gate shipments of passenger cars, two-wheelers and commercial vehicles fell in the range of 6%-79% year-on-year in June, data compiled from the reports of three brokerages—Nomura, Emkay Global and Motilal Oswal—showed. There, however, was a significant uptick compared to the previous month on improving rural demand and preference for personal vehicles amid the pandemic.
That improving rural sentiment is likely to reflect in tractor sales that likely normalised to pre-pandemic levels in June, analysts said. Rural India also led the recovery in car and two-wheeler sales, as urban demand remained muted.
Here’s a look the Auto Sales in June 2020 (company data):
Escorts' Tractor Sales Rise 21.1% To 10,851 Units In June
Escorts Ltd.’s tractor sales rose 21.1% year-on-year to 10,851 units in June, the farm equipment maker said in an exchange filing on Wednesday. While domestic sales increased 22.8% to 10,623 units, exports fell 26.9% to 228 units.
“We have seen unprecedented demand in this month... Our inventory levels, both with the company and with channel have been lowest ever,” the company said. “After necessary permissions, we were able to run our factories in multiple shifts to achieve production at about 90% of the capacity. Supply chain situation, though better than before, continues to remain volatile.”
Escorts now expects the tractor industry to grow significantly, backed by pent-up demand due to the lockdown and improving rural sentiment.