The contraction in tractor sales reflects broader market trends and economic pressures impacting the agricultural sector. Several factors contribute to this decline, including fluctuations in agricultural output, changes in government policies, and shifts in market demand.

FADA's report also points to a historically high level of unsold passenger vehicle inventory, which has impacted overall dealer performance. The high inventory levels have created financial strain for dealerships and exacerbated the challenges faced by the auto industry.

In response to these trends, industry stakeholders are urging for measures to address inventory imbalances and stimulate demand in the tractor sector. This includes exploring new market opportunities, improving agricultural productivity, and implementing supportive policies.

The 12% drop in tractor sales underscores the need for strategic interventions to support the sector and ensure sustainable growth. Addressing inventory issues and boosting market confidence will be crucial for reviving the agricultural machinery market.