Industry stakeholders attribute the growth in domestic tractor sales during June to several favorable factors. Chief among them are improved cash flows from Rabi crop harvesting, widespread and timely monsoon rains across various regions and the government’s announcement of increased Minimum Support Prices (MSP) for the upcoming Kharif season. Together, these factors have contributed to boosting farmer sentiment and driving demand.
According to data from the Tractor & Mechanization Association (TMA), domestic tractor sales in June 2025 reached 112,677 units, compared with 101,981 units in June 2024 and 90,500 units in May 2025, reflecting both year-on-year and sequential growth.
Year-to-date figures also point to an upward trend in tractor sales. During the April–June quarter of FY25, domestic tractor volumes rose by 9 percent to 286,016 units, as against 261,874 units in the same period of the previous fiscal year.
Among the manufacturers, industry leader Mahindra & Mahindra posted a strong 13 percent growth in domestic tractor sales, reaching 51,769 units in June 2025, compared to 45,888 units in June 2024. For the April–June quarter, Mahindra’s domestic volumes rose by 10 percent, totaling 129,199 units.
Sonalika Tractors also reported positive growth in June, with volumes increasing to 15,000 units compared to 14,062 units in June 2024. This June’s sales are reported to be the highest-ever monthly figure for the company.
In contrast, Escorts Kubota reported a marginal dip in domestic tractor sales, with 10,997 units sold in June 2025 compared to 11,011 units in June 2024, indicating relatively flat performance.
Production crosses 1 lakh mark in June after nearly 3 years
Significantly, monthly tractor production surpassed the one lakh mark in June for the first time in nearly three years, as export volumes also showed signs of recovery and improvement.
Export volumes registered a positive trend both for June and for the first quarter. Tractor exports in June stood at 8,936 units, higher than the 8,367 units recorded in June 2024 and marginally above the 8,930 units in May 2025. Cumulatively, tractor exports during Q1 FY25 increased to 25,307 units, compared with 24,635 units in Q1 FY24.
“The tractor demand momentum is expected to remain strong, supported by the early onset and above-normal progress of the monsoon, conducive conditions for Kharif sowing and improved reservoir levels, continued government policy support, and favourable terms of trade for farmers,” according to analysts at Kotak Institutional Equities.