HOSHIARPUR, Punjab, India - Not only has the company set the pace, it has reported its highest monthly sales ever. Sales grew by 2.4X times and domestic sales stood at 13,691 units. That's 55 percent growth against industry growth of 23 percent. In May 2020 too, Sonalika Tractors had registered an increase of 18% in sales.
Total monthly sales is reported at 15,200 tractors. With exports at just over 1,500, the company finds itself at numero uno position in the tractor export market. Sonalika has sealed 15.4 percent market share in June 2020.
Sonalika attributes its success strategy to its investment in the largest vertical integrated manufacturing unit. This has helped the auto manufacturer ramp up production in quick time. Having reached 80 percent utilization in Wk4 May 2020, in June operations was at optimum level. With its supply chain technologically enabled, Sonalika has a complete end to end supply chain management solution in-house.
All its 24 depots are inter-connected to track real time tractor delivery. Production is managed in accordance with consumption. The system enables maintaining optimum stock levels at depots and dealerships. Despite COVID19 lockdown, Sonalika was able to introduce a series of new products that are helpful to farmers in terms of increased productivity. The company also operates the largest network of channel partners.
Current framer sentiment is upbeat given MSP price, favourable monsoons and bumper sowing of summer crops. A good rabi harvest has resulted in disposable income, and this positive sentiment is expected to continue.
Sonalika is well poised to gain from current market trends. With farming forming the backbone of the country, it bodes well to see tractor purchases climb a positive slope despite lockdown and uncertain business trends.
"Beginning of Q1 this year when the first ever lockdown was announced we as a company had decided to put all our energies with positive effort to try not to de-grow in Q1. Today, the entire team is feeling proud that we have not just achieved our goal but also have registered an overall growth of 5% in Q1 which is highest for the industry," Raman Mittal, Executive Director, Sonalika Group, said Friday.
"It is a matter of great pride for us that not only in tractor industry but also in automotive, two wheeler and CV industry, Sonalika is the only company to register maximum growth in these tough times. We are extremely delighted with the overall robust performance in June'20 with 15200 tractors which is our highest ever."