Tractor Market Rebounds In 2024-25 On Strong Rural Growth

The financial year 2025 (April-March) showed a recovery for domestic tractor sales with nearly 8% year-on-year growth. The single-digit uptick was supported by good rabi and kharif seasons, and positive terms of trade. Exports showed an increase of just one percent, remaining largely flat, according to data from the Tractor and Mechanization Association (TMA).

In 2023-24, the tractor sales dropped by 8% to 867,237 units due to a high base effect and an uneven monsoon. In the year before—2022-23—the industry saw all-time high sales of 945,311 tractors. Now in 2024-25, it has come close to matching the last peak with 939,713 units sold within the country, registering a 8.36% growth.

Mahindra and Mahindra (M&M), the largest shareholder in the tractor market, recorded 12% year-to-date growth in domestic sales to 407,094 units, while Escorts Kubota Limited (EKL) registered a 1.6% growth to 110,563 units.

March of 2024-25 saw a robust growth of 25.4% to 79,946 units in the domestic tractor sales due to the commencement of the Indian new year and festivities. M&M saw a growth of 34% from March 2024 to 32,582 units in March 2025, while EKL's sales grew by 15.2% to 10,775 units in the same period.

Hemant Sikka, president, farm equipment sector, Mahindra & Mahindra Ltd. said, "The tractor industry has been witnessing good momentum on account of favorable weather conditions, good reservoir levels, strong rabi outlook and positive terms of trade for farmers...Delivery momentum picked up in the last week of March on account of festivities and momentum is expected to continue in Q1 FY26 on expectation of very good rabi crop harvest."

Bharat Madan, whole-time director and chief financial officer at Escorts Kubota, linked the year-on-year growth to favorable seasonal trends and improved market sentiment. "The start of Chaitra Navratri festival in March has led to good demand from our strong market," he said.

Giving projections for the financial year 2026, industry leaders believe domestic tractor sales are likely to surpass the 1 million mark, driven by a strong rabi and kharif season and favorable monsoon conditions. Despite challenges such as the expected cost increases following the implementation of the TREM V emission norms in the same year, industry leaders remain optimistic.