Tractor News: 10% Growth in Used Tractor Sale.
The used tractor space has clocked growth in the past two years, but new tractor sales have been in slow lane in the past few years because of weak monsoons that dampened the rural buying, old tractors, however, seen some traction, says Shriram Automall India Limited (SAMIL). They has seen 10-15 per cent year-on-year growth in used tractors.
The country’s largest organised channel for used tractor transactions, Shriram Automall India Limited (SAMIL) said that on the whole the used tractor space has clocked growth in the past two years or so. SAMIL has seen 10-15 per cent year-on-year growth in used tractors, and the unorganised industry is expected to have grown at five-eight per cent.
The overall new tractors space in the country has shrunk, the industry has shrunk to 495,000 units in FY16 from a volume of 630,000 tractors in FY11. The size of the used tractors space is almost 10-15 per cent more in terms of volumes than the new tractor industry.
Dealers of new tractors often buy used tractors from farmers as an exchange option, and then they re-sell these through their network. Tractor OEMs are hardly involved in the used tractor business.
SSAMIL organises bidding to facilitate trade of used vehicles and equipment, starting from pre-owned commercial vehicles, construction equipment, tractors, buses, cars, etc. Sameer Malhotra, chief of Shriram Automall, said that, if the monsoons are not as expected, then the buying of new tractors taper down.
Company like Mahindra and Mahindra, have seen sales picking up in April. The company sold 21,386 units in April, up 18%. Other company like Escorts and Sonalika too saw sales growing in the range of 7-10%.