InvestorQ : How were the monthly auto numbers for June reported by Escorts?
Mitali Bhutta made post

How were the monthly auto numbers for June reported by Escorts?

Dawn Cherian answered.
3 months ago

Escorts reported a 21% increase in total tractor sales at 10,851 units for the month of June 2020. Domestic tractor sales for the month of June 2020 stood at 10,623 units compared to just 8648 units in the Jun-20 period. However, global pressures were evident with global exports falling by 26.9 percent at 228 units. Escorts confirmed a demand spurt in June.

The positive growth in tractor sales was largely backed by pent-up demand of the lockdown period, better farmer sentiment due to good monsoon prediction and the fact that the COVID-19 lockdown had limited impact on rural income levels and demand. The better than normal Kharif sowing is also likely to be positive for the tractor sales in coming months.

Escorts confirmed that the tractor industry was witnessing tremendous and lateral growth in all markets. The inventory levels had also been the lowest ever. Most factories have restarted operations and that helps tractors units to return to 90% capacity utilization. However, the risk for Escorts and other tractor players is the supply chain situation.