In February, the tractor industry maintained its year-on-year growth momentum in domestic sales for the third consecutive month, despite a slight dip on a sequential basis. Meanwhile, exports continued their upward trend, registering both year-on-year and month-on-month growth.
Top tractor-maker Mahindra & Mahindra’s domestic sales in February 2025 stood at 58,797 units, marking a significant 36 per cent rise compared to 43,277 units in the same month last year. This growth was driven by strong rabi sowing, supported by higher water storage levels in major reservoirs and consistent government backing.
Sales in February
However, sales in February showed a decline when compared to the 61,923 units sold in January 2025, according to data from the Tractor & Mechanization Association (TMA).
The country’s leading tractor manufacturer recorded a 19 per cent increase in domestic tractor volumes, reaching 23,880 units in February 2025, up from 20,121 units in February 2024. Over the first 11 months of the current fiscal year, the company’s total sales rose by 10 per cent, climbing from 340,250 units in the previous fiscal period to 374,512 units.
Escorts Kubota posted a 10 per cent rise in domestic tractor sales, with volumes increasing to 7,968 units in February 2025, compared to 7,269 units in January 2025. “While demand remained strong in our key markets, the western region experienced some pressure due to lower crop prices affecting liquidity,” the company stated.
Similarly, Sonalika Tractors recorded an 11 per cent increase in domestic sales, reaching 7,669 units in February 2025, up from 6,911 units in the previous year.
Total tractor production in February 2025 stood at 65,996 units, down from 71,607 units in February 2024 and 92,648 units in January 2025.
Tractor exports also showed improvement, rising to 8,954 units in February 2025, compared to 7,847 units in January 2025 and 8,487 units in February 2024.
“Following a strong kharif crop, the rabi crop outlook remains positive due to favourable weather conditions. Increased agricultural credit limits, continued government support for boosting farmer incomes, and a bumper rabi harvest will further drive tractor demand in the coming months,” said Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd.
The tractor segment had reached a record high in FY23, which led to a 7 per cent decline in FY24 due to the high base effect. However, with a favourable base, good monsoons, and improving terms of trade for farmers, the industry is projected to grow by 7 per cent in FY25, according to Jay Kale, auto analyst at Elara Capital.