However, Goenka added that sales are expected to pick up during the October-December quarter.

Speaking to a business news channel, he said the tractor industry will grow as per guidance at 12-14% during the current fiscal.

Unlike last year when the major festivals fell in September, this year they fall in October. Sales of passenger vehicles, tractors etc got dented in August because of floods in certain parts of the country and September is a month when Shraddh falls which is considered inauspicious for new purchases.

Goenka said M&M sold a total of 77,380 units of tractors during the July-September quarter in FY18, but during July-August this fiscal, sales have been of around 37,949 units. “In spite of rising input costs, we will be able to maintain our margins with rise in volumes in the festive season since increased volumes give enough opportunity to spread fixed cost,” he added.

During April-June, the company commanded a market share of 43.3% ahead of other major industry palyers, including TAFE (Tractors and Farm Euipment), Sonalika and Escorts which have 18.8%, 11.3% and 10.7% market share, respectively.

During the April-June quarter, M&M tractor sales were up 19% year-on-year at 97,360 units while the overall tractor sales grew by 27%.