Domestic auto major Mahindra & Mahindra (M&M) on Wednesday said the tractor business is witnessing a never seen demand.
In an interview to CNBC-TV18's Rajesh Jejurikar, executive director (Auto & Farm sectors), said the cash flows in the farm business are not as seamless as in the auto business. However, he added that for the first time ever, the farm equipment sector had a negative working capital cycle.
According to Jejurikar, tractors have seen a healthy momentum and it was a record quarter for production, "But the company lost market share as they had short produced and were impacted in Q1 when they started building stocks."
He said demand has been robust driven by the rural story.
"Fortunately for us, 50 percent of our auto business is rural-based. Scorpio, Bolero, and Pickups, all three of which are our strong products, have a high rural bias. We saw momentum on these three products pick up as soon as networks opened in May. So the demand has been very robust all through clearly driven by the rural story," he added.