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    M&M eyeing price hike in November; says company’s tractor market share at 40% plus

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    M&M eyeing price hike in November; says company’s tractor market share at 40% plus

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    According to Hemant Sikka, President - Farm Equipment Sector at Mahindra and Mahindra (M&M), the month of October has shaped up quite well for the tractor industry. The company is almost 2 percentage points higher on market share compared to last year. “At YTD level, our market share is upwards of 40 percent. Both our brands Mahindra and Swaraj are doing very well in the market and we hope to continue to do well,” he said, in an interview to CNBC-TV18.

    According to Hemant Sikka, President - Farm Equipment Sector at Mahindra and Mahindra (M&M), the month of October has shaped up quite well for the tractor industry.
    “We are now looking forward to having a good November,” he said.
    The company is almost 2 percentage points higher on market share compared to last year. “At YTD level, our market share is upwards of 40 percent. Both our brands Mahindra and Swaraj are doing very well in the market and we hope to continue to do well,” he said.
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    The company has taken a lot of efforts internally within the organization to cut costs. All that effort has yielded results for the company, in its effort to maintain margins.
    “I won’t be able to talk anything on margins, we are in a silent period but whatever guidance we have given to analysts, we will be on track for that,” Sikka shared.
    M&M has recently launched a new tractor, Yuvo Tech Plus, and it is getting a good feedback from all customers.
    “As we scale this up, we will still have a better leverage on the market share,” he stated.
    This time there was deficient rainfall in the month of August but September had a bumper rainfall and till end of October, many states were getting massive rainfall.
    “As a result, the harvesting season has got shifted by 2-3 weeks. So, the rabi season will also be shifted by about 2 weeks. This whole backended rainfall is very good for rabi crop,” he explained.
    M&M has taken three price increases so far this year.
    “This time, the commodity inflation has been unprecedented. We decided that we are going to pass on the increases in small batches and this strategy has worked very well for us. We took an increase in January, then in April and another one in July. So three increases we have already taken and we are now preparing for another increase in the month of November,” he explained.
    In terms of production cut, he said, “Thankfully, the tractor industry is not affected by the chip shortage and that is why the whole industry has ramped up very well from the COVID lockdowns that we had last year. Our tractor business did not take even a single day’s cut. We are still running at our full production level.”
    For the full interview, watch the accompanying video.
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