According to data from the Tractor & Mechanization Association (TMA), domestic tractor sales in July 2025 stood at 64,320 units, compared with 112,677 units in June 2025 and 59,529 units in July 2024.
The drop in July volumes, as per TMA data – which reflects OEM wholesale dispatches – is more about inventory and timing than demand. After heavy June stocking, OEMs eased July dispatches to keep dealer inventory and receivables in check (something that happens almost every year) while retail registrations, as captured in FADA data, stayed firm,” said Poonam Upadhyay, Director, Crisil Ratings.
For the top players, July wholesales were still up about 9% year-on-year, underscoring healthy demand. Simply put, in July wholesale normalised, while retail held up aided by improved monsoon spread, kharif sowing activity, and steady rural sentiment, she added.
Among the manufacturers, industry leader Mahindra & Mahindra posted a 5 per cent growth in domestic tractor sales at 26,990 units in July 2025, compared to 25,587 units in July 2024. For the April–July 2025 period, Mahindra’s domestic volumes rose by 10 per cent to 156,189 units, against 142,517 units a year ago.
Escorts Kubota reported a marginal increase in domestic tractor sales, with 6,624 units sold in July 2025 compared to 6,540 units in July 2024.
Meanwhile, monthly tractor production stayed robust in July and even increased sequentially, after surpassing the one-lakh mark in June for the first time in nearly three years. Tractor production stood at 107,417 units in July 2025, as against 104,329 units in June 2025 and 96,380 units in July 2024.
Export volumes stood at 8,477 units in July 2025, compared with 8,423 units in July 2024 and 8,936 units in June 2025.
“With timely, widespread, above-normal monsoon rains and higher water reservoir levels, rural sentiments are healthy, and farmers are seeing better cash flows. While commercial demand remains soft, agricultural demand is holding steady. With Kharif sowing progressing well and already exceeding last year’s sown area, we remain optimistic about continued growth in the tractor industry,” said Escorts Kubota.
