Ad
Ad
Ad
Steel and pig iron prices, which account for over 90% of total raw material costs for tractors, have decreased in recent months.
According to a statement from CRISIL, domestic tractor sales volume growth would drop by half to 4-6% in fiscal 2024 from a strong base created by a compound annual growth rate of 10% since fiscal 2020.
Aa per the CRISIL Ratings, the rate of growth in tractor sales would be half in FY24, but operational margins will rise due to decreased input prices.
Tractor sales volume will reach a new high in fiscal 2023 as farm response remains positive following another strong monsoon as this is the primary source of revenue and a rise in the Minimum Support Price (MSP) for the 2022-23 market season.
Therefore, net cash-positive balance sheets will sustain excellent credit profiles in the future. The farm and commercial tractor industries will drive growth in the coming fiscal year.
"The 5% increase in MSP for wheat for the current rabi crop will boost farmers’ earnings, while the government's infrastructure push and increased building activity will boost commercial demand," Director Naveen Vaidyanathan stated.
Nitin Bansal, Associate Director stated that high input prices have resulted in operating margins dropping for the last two fiscals, from a high of nearly 22% in fiscal 2021 to about 15% in fiscal 2023.
Falling input prices, such as those for steel and pig iron, will help tractor makers' operating margins by 100-200 basis points (bps).
Steel and pig iron prices, which account for over 90% of total raw material costs for tractors, have decreased in recent months and may fall by 6-12% next fiscal year due to lower coal prices.
According to Bansal, this should assist raise the operating margin to 16-17%.
Tata Motors Opens High-Tech Spare Parts Warehouse in Guwahati
The facility also features cutting-edge storage technologies that suit to a variety of applications, such as gravity spiral and vertical reciprocating conveyors. ...
26-Apr-24 12:00 PM
Read Full NewsJBM Electric Vehicles Unveils Zero-Emission Electric Buses at Bus2Bus 2024
Nishant Arya, Vice Chairman and MD of JBM Group, showcased the buses, which are based on worldwide European standards....
26-Apr-24 10:26 AM
Read Full NewsAshok Leyland's Ambitious Plan: From 30 to 200 Software Engineers in 3 Years
Strict rules and the ADAS (Advanced Driver Assistance System) trend are projected to be significant drivers of softwarisation in commercial vehicles....
26-Apr-24 09:13 AM
Read Full NewsChargeup's Big Goal: Enlisting 1 Lakh EV Drivers by 2027
Chargeup aims to onboard 100,000 EV drivers by 2027, fostering sustainable transportation with innovative solutions and driver empowerment....
26-Apr-24 07:10 AM
Read Full NewsTechnavio Report Forecasts Significant Growth in Global LCV Market
Telematics and autonomous driving are two examples of technological developments that are revolutionizing vehicle performance and safety....
26-Apr-24 06:54 AM
Read Full NewsTata Motors Breaks Records with 222 Patents and 117 Design Applications in FY24
Patents cover various vehicle systems like powertrain, body & trim, suspension, brakes, HVAC, and emission control....
25-Apr-24 02:21 PM
Read Full NewsAd
Ad
Top 10 Kubota Tractors in India: Prices & Specs
26-Apr-2024
Tips for Selling Your Commercial Vehicles
25-Apr-2024
Solis 4215 E: Redefining Farming for Indian Farmers with Innovation & Affordability
25-Apr-2024
Government Initiates Early Implementation Plans for BS-VII and CAFE-III Emission Norms
22-Apr-2024
Tips To Improve Mileage Of Tata Intra V30 Pickup Truck
20-Apr-2024
Top 5 Reasons to Buy a Tata Ace HT Plus in India
17-Apr-2024
View All articles
Registered Office Address
Delente Technologies Pvt. Ltd.
M3M Cosmopolitan, 12th Cosmopolitan,
Golf Course Ext Rd, Sector 66, Gurugram, Haryana
pincode - 122002
Join CMV360
Receive pricing updates, buying tips & more!
Follow Us
COMMERCIAL VEHICLE BUYING BECOMES EASY AT CMV360
CMV360 - is a leading commercial vehicle marketplace. We helps consumers to Buy, Finance, Insure and Service their commercial vehicles.
We bring great transparency on pricing, information and comparison of tractors, trucks, buses and three wheelers.