Whereas there aren’t any indications about organising new factories simply but, firms like Mahindra, Escorts and Sonalika are growing shifts and clearing provide chain snags to hit 100% utilisation each for home and export gross sales.
“For 18 months, tractor factories have been engaged on a single or 1.5 shifts at greatest due to demand slowdown. With the numbers choosing up, factories are shifting to 2 or three shifts to hit 100% capability utilisation. The capability is presently 9.5 lakh items on a two-shift foundation however we are able to additionally go to a few shifts if the demand holds up,” mentioned Tractor Producers Affiliation president T R Kesavan.
A survey by ICRA confirmed that simply 10-12% of those that bought tractors opted for the mortgage moratorium versus 75% truck and bus patrons. Tractor financing additionally picked up as a result of financiers are cautious of truck and bus loans, mentioned ICRA VP Shamsher Dewan.
Watch Tractor firms increase output as September gross sales surge 80%