M&M Tractor Sales Up 28% in August on Monsoon, Festive Demand Prospects

Mahindra & Mahindra Ltd.’s Farm Equipment Business (FEB), part of the Mahindra Group, reported a robust 28% year-on-year growth in August with 26,201 tractor sales, driven by favorable monsoon conditions and positive sentiment ahead of the festive season. However, this is lower than the 26,990 units sold in July 2025.

Including exports, total sales by the country's largest tractor manufacturer reached 28,117 units, up 28% from 21,917 units a year earlier. Exports contributed 1,916 units, reflecting a 37% increase from the same month of the previous year.

Veejay Nakra, President, Farm Equipment Business, Mahindra & Mahindra Ltd., said, “The above-normal monsoon and improved reservoir levels augur well not only for kharif crops but also for the upcoming Rabi season in October.”

However, he said, “While the IMD's forecast of surplus rainfall in September, especially in certain pockets, may pose risks to kharif harvests, it needs to be managed with caution.”

Nakra added that all these factors, along with continued government support through financing schemes for farmers, could potentially drive tractor demand during the upcoming festive season.

Strong year-to-date growth

For the April–August period of financial year 2026, M&M reported domestic tractor sales of 182,390 units, up 12% from 163,035 units in the same period last year. Exports during this period grew 13% to 8,524 units, compared with 7,558 units in the previous year. Overall, year-to-date tractor sales stood at 190,914 units, registering 12% growth over 2024–25’s 170,593 units.

The company recorded its highest-ever annual domestic tractor sales in 2024–25 at 407,094 units, up 12% from the previous year. The milestone was driven by a strong finish in March, when sales surged 34% year-on-year to 32,582 units, against 24,276 units in March 2024.

According to a senior official on the last earnings call, the company is evaluating the factors behind the farm industry’s decline in Europe, the US, and other geographies, and will formulate a strategy to address them.

The tractor industry has been awaiting the implementation of the TREM-V norms in 2026, which are most likely to exclude tractors between 25 HP and 50 HP. This may increase the cost of tractors and thereby affect sales. Currently, tractors in India above 50 HP adhere to TREM-IV norms, while the bulk of the market—tractors below 50 HP—continue to operate under the older TREM-IIIA standards. Both sets of regulations, adapted from European benchmarks, are designed to reduce carbon emissions.

According to ICRA's latest report, India's tractor industry is projected to maintain growth momentum with volumes expected to rise 4-7% in 2025-26, driven by favourable monsoon conditions and positive farm sentiments. The Indian tractor industry witnessed a marginal decline of a percent in overall retail sales during 2024-25, though recent months have shown strong recovery with July 2025 recording wholesale volumes increasing 8% on-year.