M&M records 20% YoY growth in December tractor sales

Mahindra & Mahindra's Farm Equipment Sector recorded a double-digit year-on-year growth of 20% in its December volumes. The company noted that the growth reflects strong rabi sowing and positive sentiments on account of the strong cash flow Kharif harvest.

The largest Indian tractor manufacturer with more than 40% market share sold 22,943 tractors in December, including domestic as well as exports. This is an increase from 19,138 units sold in the same period last year.

The domestic sales were at 22,019 units, an increase from 18,028 units in the same month last year. However, the exports declined by 17% to 924 tractors. Going forward, the company is betting on robust agricultural sentiments and favourable terms of trade for farmers.

“Sentiments have remained positive in December on account of positive cash flow momentum from Kharif harvest”, Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra Ltd, said. Favourable reservoir levels have resulted in strong sowing for the rabi season, further increasing demand for tractors, he said.

In the nine months of FY25, M&M saw a 10% on-year rise in sales to 336,623 units. Exports increased 28% to 12,296 units while domestic sales came in at 324,327 units, recording 9% growth.

Domestic tractor industry volume has been on a slow lane in this financial year with volume remaining almost flat in the first half of the year. However, the companies are optimistic about mid-single-digit growth for the full financial year with a double-digit growth expected in the second half on the back of the recovery in the rural economy, good monsoon, and government spending.

In the April-November period, the industry registered domestic sales of 688,054 units, an increase of 4.3% from 659,881 units in the year-ago period.

M&M recently revised its full-year guidance for the tractor industry growth upwards to 6-6.8% from its 5%. For the second half of the year, the company expects the industry to grow between 13-15%.