Indian Auto Retail Sector Sees Growth: Mahindra & Mahindra Leads Tractor Market in March 2024

In March 2024, the Indian Auto Retail sector experienced a steady increase of 3.14% year-on-year, according to the latest report by Mr. Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA). While some segments flourished, others faced declines, providing a mixed outlook for the industry.

Segment-wise Performance:

Two-Wheeler and Three-Wheeler Segments:

The two-wheeler segment registered a promising growth of 5%, indicating a favourable market demand for bikes and scooters.
Similarly, the three-wheeler segment witnessed a remarkable growth of 17%, reflecting a rising preference for three-wheelers, particularly in urban transportation and commercial applications.

Challenges in Passenger Vehicles, Tractors, and Commercial Vehicles:

On the flip side, the passenger vehicle segment encountered a downturn, with a decline of 6% in sales. Factors such as supply chain disruptions and changing consumer preferences contributed to this loss.

The tractor segment also faced a marginal decline of 3% in sales. Factors like unpredictable weather conditions and rising input costs posed challenges for the agricultural machinery market.

Additionally, the commercial vehicle segment saw a decrease of 6% in sales, reflecting subdued industrial activity and fluctuating demand in the freight industry.

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FADA Tractor Sales Report March 2024

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Market Share Analysis of Tractor OEMs:

Mahindra & Mahindra Limited maintained its leading position in the tractor market with a market share of 22.87% in March 2024. Despite a slight decrease from the previous year, the company continues to be a frontrunner in the industry.
Mahindra & Mahindra Limited (Swaraj Division):

Mahindra & Mahindra Limited's Swaraj Division also showcased a strong performance, securing an 18.44% market share. This reflects the brand's resilience and market presence in the tractor segment.
International Tractors Limited:

International Tractors Limited saw an increase in market share, reaching 13.19% in March 2024. The company's growth signifies its efforts to expand its market footprint and cater to the evolving needs of farmers.
TAFE Limited:

TAFE Limited maintained its position in the market with an 11.55% market share. Despite facing challenges, the company remains a significant player in the tractor segment.
Other Players:

Escorts Limited (Agri Machinery Group), John Deere India Pvt Ltd (Tractor Division), and Eicher Tractors also contributed to the tractor market, albeit with varying market shares.

In conclusion, while the Indian Auto Retail sector experienced overall growth, the performance varied across segments. While two-wheelers and three-wheelers thrived, passenger vehicles, tractors, and commercial vehicles encountered challenges. Mahindra & Mahindra Limited's dominance in the tractor market shows its strong position, while other OEMs continue to understand through market uncertainties to maintain growth and remain competitive.

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