Domestic tractor industry has been at the forefront of farm mechanisation and witnessed robust growth in FY16-19, with total industry volumes rising ~50% to a record high of 7.9 lakh units in FY19. Due to its inherently cyclical nature, high base and muted farm incomes, we expect the industry to largely consolidate at this level of output in FY19-21E. While H1FY20 registered ~10% drop in volumes, excellent monsoons this year and some state subsidy support over H2FY20E are seen helping the industry post negative single digit decline in FY20E. Escorts has previously demonstrated its ability...