Leading tractor manufacturers, who had earlier projected high single-digit growth for 2025-26, said the early onset of monsoon and timely crop sowing activities have contributed to the sales momentum.
14 Jun 2025 | 2380 Views | By Yukta Mudgal
India's domestic tractor market continued to gain traction in May 2025, with sales rising 9% year-on-year, reflecting strong rural sentiment and early arrival of good monsoon.
According to the Tractor and Mechanization Association (TMA), domestic sales climbed to 90,500 units in May 2025, up from 82,948 units a year ...
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India's domestic tractor market continued to gain traction in May 2025, with sales rising 9% year-on-year, reflecting strong rural sentiment and early arrival of good monsoon.
According to the Tractor and Mechanization Association (TMA), domestic sales climbed to 90,500 units in May 2025, up from 82,948 units a year ago. On a month-on-month basis, too, sales grew by 9% from 82,839 units in April. Tractor exports rose 1.3% year-on-year to 8,930 units and surged 20% over the previous month.
Leading tractor manufacturers, who had earlier projected high single-digit growth for 2025-26, said the early onset of monsoon and timely crop sowing activities have contributed to the sales momentum.
Tractor makers also pointed to broader tailwinds including forecasts of a favourable monsoon, improved minimum support prices (MSP), and stronger farm sentiment.
Mahindra and Mahindra, the largest tractor manufacturer sold 38,914 tractors in the month, a 10% growth from the last year. Veejay Nakra, President of the Farm Equipment Business at Mahindra & Mahindra, said, “The early arrival of an above-normal southwest monsoon is encouraging for kharif sowing. Land preparation for paddy is progressing well. The MSP hike for Paddy and other kharif crops, better reservoir levels, and new government schemes are boosting farmer morale, which bodes well for future tractor demand.” Mahindra also exported 1,729 tractors during the month.
However, M&M's exports declined by 8% on-year due to international headwinds. In the last quarter results call, Rajesh Jejurika, Executive Director and CEO (Auto and Farm Sector) at Mahindra & Mahindra Ltd had said, "The one area we haven't done as well as we would have liked is the international and export markets. This is because we've seen a significant slowdown around the world over the last year. So that's a space where we haven't reached where we wanted to." The company has also recorded write-downs for two of its subsidiaries namely Sampo Rosenlew in Finland and Mitsubishi Agricultural Machinery in Japan.
Another leading tractor manufacturer, Escorts Kubota Limited, reported total sales of 10,354 tractors in May 2025, a marginal rise of 0.7% over 10,286 units in May 2024. However, domestic sales declined 2% to 9,703 units, while exports jumped 71.3% to 651 units.
The company noted that domestic sales were impacted by seasonal factors but expects recovery to gain pace with the monsoon setting in, improved reservoir levels, and stronger liquidity in rural areas.
Interntional Tractors Limited's Sonalika Tractors, one of the largest tractor exporters, continues to expand its footprint in the domestic market. It recorded its highest-ever May sales, delivering 14,213 units, marking a new monthly peak.