TRACTOR MARKET
Will Nifty give up 24,000 or make new highs this week? 7 factors to decide
Looking ahead, market focus will shift to upcoming releases including US and Indian manufacturing Purchasing Managers' Index (PMI) data, alongside a pivotal speech from the Federal Reserve Chair. Meanwhile, attention within India remains fixed on the progress of the monsoon season, with the India Meteorological Department confirming its onset in Delhi and other parts of North India.
Competitive intensity in used vehicle market to be on the rise: India Ratings
India Ratings and Research predicts that vehicle financiers will increase the share of used vehicles in their AUM due to rising new vehicle prices, food inflation, heat wave, moderation in capacity utilization due to elections, and slowing rural economy. The agency also expects a decrease in FY25 growth rates from FY24 levels. The agency expects non-bank finance companies to focus on used vehicles as assets class, presenting a favorable risk-return in terms of asset quality and pricing power.
Government focus on agriculture, rural income to sustain tractor demand: Swaraj Engines
The government's agricultural focus in India, along with initiatives to boost rural incomes, is expected to sustain tractor demand despite a 7 per cent industry sales decline reported by Swaraj Engines Ltd. The company's annual report highlights opportunities in the horticultural segment and factors like increased affordability, demand for farm mechanisation, and government efforts to improve agriculture. Swaraj Engines foresees its engine business aligning with the industry's growth trajectory.
Market Moves: Ashi Anand’s take on Indian IT and auto sectors
Ashi Anand, Founder and CEO of IME Capital, provides an in-depth analysis of the Indian IT and auto sectors. Anand highlighted the persistent strength in deal wins across IT companies despite weaker-than-expected revenue growth, attributing this to reduced discretionary spending.
Market poised for uptrend with phases of consolidation: Sudip Bandyopadhyay
So, once the tractor volume starts picking up, we will see further upside in M&M. The company has done fantastic early well as far as the SUV business is concerned. They have done well in other smaller segments as well, including farm equipments. But performance in tractors was promising and that will be icing on the cake as and when it happens.
Vehicle registrations rise by a modest 3 per cent in May
Vehicle registrations increased by 3% to 2.09 million units last month, with delays in purchases due to election uncertainties and extreme heat. Passenger vehicle registrations slightly decreased by 0.96% to 303,358 units. Two-wheeler registrations rose by 2.48% to 1,534,856 units, three-wheelers by 20.09% to 98,265 units, and commercial vehicles by 4.07% to 83,059 units.
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May auto retails impacted by heatwave and elections, dip 5.3% MoM: FADA
In May, auto retail sales dropped by 5.28% from the previous month, influenced by the heatwave and the recent Lok Sabha elections, according to FADA. However, annual figures showed a 2.6% increase. Two-wheelers and commercial vehicles saw year-on-year growth, while passenger vehicles and tractors slightly contracted.
Mahindra sales rise 17 pc in May at 71,682 units
Mahindra & Mahindra witnessed a 17% year-on-year increase in total wholesales, reaching 71,682 units in May. Domestic passenger vehicle sales surged 31% to 43,218 units, while exports rose 2% to 2,671 units. The Farm Equipment Sector reported a 9% rise in total tractor sales, attributing the growth to timely monsoons and favorable agricultural sentiments.
M&M shares surge 3% as BofA upgrades it to Buy, sees 22% upside
BofA Securities believes that the company has multiple growth catalysts that will play out over the next 12-18 months. M&M's core business remains steady with market share gains in the SUV segment and a potential turnaround in the tractor biz.
Balkrishna Industries off-roading well in India & US, Europe to give traction
Balkrishna Industries’ global peers have cut down production as their revenue fell by around 10% in the March quarter, but Balkrishna’s volume grew by 12.9% year-on-year to 82,085 tonnes in the period — the highest in eight quarters.
M&M's premium valuation to ride on SUV, tractor demand
Mahindra & Mahindra may see an earnings-led upgrade due to encouraging bookings for its newly-launched compact SUV, the XUV 3XO, forecasts of improvement in the tractor segment, and expectations of increased industry volume growth. The company's premium valuation at 23 times one-year forward earnings reflects investor confidence in its market performance.
M&M Q4 Preview: Volume to drive 7% YoY revenue growth but tractor sales may disappoint
Three brokerage firms anticipate the auto giant's net profit to fall within the range of Rs 1,777 crore to Rs 2,079 crore. Revenue from operations is projected to reach Rs 24,051 crore. In the corresponding period last year, M&M disclosed a standalone PAT of Rs 1,549 crore and revenue of Rs 22,571 crore.
Escorts Kubota plans to invest up to Rs 4,500 cr in new plant over next 3-4 years
Escorts Kubota Ltd plans to invest up to Rs 4,500 crore over the next three to four years in a new manufacturing plant in Rajasthan's Ghiloth. The plant aims to double domestic tractor production capacity to 3.4 lakh units annually and establish new engine and construction equipment lines. The greenfield project is expected to cost between Rs 4,000 crore to Rs 4,500 crore. Land procurement is slated for this fiscal year, with construction to commence by year-end.
Escorts Kubota Q4 Results: Net profit rises on lower costs
The domestic tractor sector saw a decline in volumes in the quarter, as agricultural income was hit by patchy monsoon rains and falling reservoir levels, analysts said.
VST Zetor launches new range of tractors
VST Zetor Private Ltd, in collaboration with HTC Investments, introduced three 41-50 HP tractors, featuring a DI Engine and dual-acting power steering. These tractors aim to meet various farming applications in India.
Auto sales grow 3.1% in March, PVs and CVs fall 6% each ahead of Lok Sabha elections: FADA
Auto retail in March saw a 3.14% YoY growth, despite declines in passenger vehicles, commercial vehicles, and tractors. E-2W sales surged after FAME-II subsidy expiration, reaching 9.12% market share. Lok Sabha elections impacted PV, CV, and tractor sales. FY24 witnessed 10% growth with optimistic outlook for FY25, despite urban consumer sentiment decline.
Transformative policy initiative
For startups spearheading indigenous EV solutions, this presents an invaluable opportunity to leverage global expertise and expedite technological advancements toward localised production under the Make in India initiative. Nevertheless, while the new EV policy marks a significant stride forward, challenges persist on the road ahead.
Tractor sales in India hit a rough patch, reflecting rural economic slowdown
Tractor sales in India, a key indicator of rural economic health, have dropped by 4% in the first nine months of the fiscal year. States like Maharashtra, Karnataka, and Telangana experienced significant declines, attributed to erratic weather conditions and lower agricultural output. However, Uttar Pradesh saw a 6% increase in tractor sales, but it couldn't offset the declines in other states.
Farmers from 10 EU countries join forces - and tractors - to protest agricultural policies
The farmers met their colleagues from neighbouring Germany, Poland and Slovakia at a number of border crossings. Farmers from 10 EU countries, ranging from Central Europe to the Baltics and the Balkans, were participating in the protest, organisers said.
Farmers' protests: Tractor march in Haryana, dharnas outside residences of 3 BJP leaders in Punjab
On the fifth day of their 'Delhi Chalo' march -- called by the Samyukta Kisan Morcha (Non-Political) and the Kisan Mazdoor Morcha -- the farmers stayed put at the Shambhu and Khanauri points of the Punjab-Haryana border as they press the Centre to accept their demands, including a legal guarantee to minimum support price (MSP) for crops.
Steady auto show may help M&M ride out its weak tractor demand
The company’s operating profit grew by 15% even though the tractor volume dropped by 3.5% for the December quarter. It suggests that the automotive segment has gained enough heft to deliver growth and bring counter-cyclicality to the company’s earnings. A few years ago, the automotive division contributed two-thirds to the revenue, but only one-third to the operating profit. The gap is narrowing gradually.
The rural economy is under stress, says Mahindra & Mahindra; cuts tractor industry sales forecast for FY24
"The rural economy is under stress. The sentiment is more negative than what we expected," said Rajesh Jejurikar, executive director, farm equipment and automotive sectors at Mahindra & Mahindra said at a press briefing after December quarter results. He cited weak government spending, uneven rainfall distribution, low reservoir levels and weak mandi arrivals of kharif crop as the key reasons. Negative farm sentiments are also seen in the slow progress of rabi sowing, he noted in his presentation.
Farmers' demand for guaranteed MSP unlikely to have significant impact on tractor industry: M&M
Mahindra & Mahindra reports Q3 PAT increase to Rs 2,658 crore. Tractor sales decline 4.1%. Tractor industry volume declines due to weaker monsoon, weather vagaries, high base, and lower reservoir levels. Farmers' protest unlikely to impact tractor industry. Maharashtra, Andhra Pradesh, Telangana, and Karnataka markets face stress. Good monsoon and reservoir levels will boost rural sentiment.
Mallika Srinivasan steps down as Swiggy's independent director
Swiggy said Srinivasan was stepping down due to “increasing business commitments”, without explaining further. The firm did not name a replacement for the position.
During FY25 some price increase would come from OEMs: Ramesh Iyer, M&M Financial
Ramesh Iyer, MD & VC of M&M Financial, discusses the growth of the loan book and the slower growth in the tractor segment. He expects the rural market to continue performing well and predicts that pre-owned vehicles will see faster growth. Iyer also shares the company's plans to enter the insurance sector through partnerships. He acknowledges the rise in borrowing costs and the need to improve NIMs. The asset quality remains under control, and the company is confident in achieving its growth targets.
Why Mahindra Finance is confident of bringing down credit cost to 1.5-1.7%
“We did believe and expect that post-festival the borrowing rate will come down. But we are also now convinced and changing our stance that we do not see these rates coming down before March, which would directly mean that we will have to now increase our lending rates as well.”
India's auto sales jump 20% in September, 2-wheelers' new feat shows turnaround for rural markets
India's overall auto sales in September increased by 20% compared to the previous year. The two-wheeler and three-wheeler categories also saw new records. The 2W category had a 22% increase, while the 3W category had a 49% increase. However, tractor sales decreased by 10%. The sales growth is attributed to the upcoming festive season, the introduction of new models, attractive promotional offers, and increased demand in rural areas. This positive trend is seen as a potential turnaround in the rural market.
M&M market valuation crosses Rs 2 lakh cr
The automaker's market cap has doubled in less than one-and-a-half years - from Rs 1 lakh crore in April 2022 to over Rs 2 lakh crore this week. M&M market cap hit Rs 2 lakh crore mark on Monday.
Mahindra unveils new range of small tractors; eyes doubling tractor exports in 3 years
The company said it has invested Rs 1,200 crore on developing the OJA platform which consists of four platforms that could churn out 40 different trims in the 20-70 HP power output. The company aims to cater to the needs of farmers with small land parcels, especially in India, US and ASEAN region with the new range. Mahindra & Mahindra President - Farm Equipment Sector Hemant Sikka said the OJA brand would help in enhancing the company's share in the market while helping it enter new markets.
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