Tractor Sales See Strong Growth in FY25, Industry Outlook Positive for FY26

Tractor Sales See Strong Growth in FY25, Industry Outlook Positive for FY26

Sonalika Tractors reported a 7% rise in domestic tractor sales in FY25, selling 123,764 units.

The overall tractor industry bounced back in FY25 with an 8% increase in domestic sales, recovering from an 8% decline the previous year. This growth was supported by a good monsoon and other favourable conditions.

Exports also improved slightly, reversing the sharp 22% drop seen last year. Total tractor production during FY25 crossed the one-million mark.

According to data from the Tractor & Mechanisation Association (TMA), domestic tractor sales reached 939,713 units in FY25, up from 867,237 units in FY24.

Company Highlights

• Mahindra & Mahindra, the leading tractor manufacturer, recorded a 12% increase in domestic sales, reaching 407,094 units in FY25.
  “We achieved our highest-ever tractor sales this year, thanks to strong retail performance across the country and the lowest-ever inventory in our dealer network,” said Hemant Sikka, President of the Farm Equipment Sector at Mahindra & Mahindra Ltd.

• Sonalika Tractors registered a 7% growth in domestic sales, selling 123,764 units.

• Escorts Kubota saw modest growth, with annual sales increasing by 1.6% to 110,563 units. However, the company recorded a strong 15% increase in March sales.

March saw a sharp rise in overall tractor sales, both year-on-year and month-on-month. Domestic sales for the month stood at 79,946 units, up from 63,755 in March 2024 and 58,797 in February 2025.

Outlook for FY26

Industry experts and analysts are optimistic about continued growth in the first quarter of FY26. “Sales picked up during the last week of March due to festive demand, and this momentum is expected to continue into Q1 FY26, supported by a good Rabi harvest and improved cash flow for farmers,” said Sikka.

Credit rating agency ICRA expects tractor sales to grow moderately by 4–7% in FY26, assuming a normal monsoon. Also Read | In FY’23, domestic tractor sales are projected to drop by half to 4-6%

Exports and Production

• Total tractor exports in FY25 stood at 98,813 units, slightly higher than the 97,828 units exported in FY24.

• Mahindra’s exports jumped by 27% to 17,547 units.

• Sonalika and Escorts saw an 11% drop in exports, selling 33,606 units and 4,991 units respectively.

Total production for FY25 reached 1,007,660 units, up from 947,143 in FY24. However, it remained below the FY23 peak of 1,071,310 units, which was the highest-ever annual production figure.