Tractor segment could see flat growth in FY2024 says Mahindra’s Rajesh Jejurikar

financialexpress.com:

The Indian tractor segment has been witnessing robust growth over the last several quarters, but gradually there seems to be some signs of slowing down, and according to Rajesh Jejurikar, President – Auto & Farm, Mahindra & Mahindra, the tractor segment could see a flat growth in FY2024.

While, the revised outlook has changed from the low single-digit growth the company anticipated for FY2024 in May, the outlook for a flat growth is “not significantly different” from what the company had said earlier.

In terms of festival impact, November sales are expected to be in the green given that Diwali and festive days find its place in the month. But this also means that the growth seen in March last year on the back of Navratra last year, will not see a repeat this fiscal.

“The really big difference is March, because last year Navratra’s were in March, and this year it is not. This is what we are factoring into our projections and hence, the industry will probably be flat,” shares Jejurikar.

Responding to a query if this would have an impact on its expansion plans, he reiterated that the company will continue to invest in its announced capacity expansion.

“We don’t normally let investment decisions be impacted by short-term market. And it is not surprising (slowdown) because last year the industry was in a very high baseline based on a very rapid growth over the last 2-3 years starting with the Covid period. This is just an adjustment over the high base.”