According to the data from the Tractor and Mechanization Association, domestic tractor industry volume declined by 1.5%, while exports improved by 1.6% during the year.
10 Jan 2025 | 2743 Views | By Yukta Mudgal & Kiran Murali
India’s tractor industry witnessed a marginal decline in its wholesale volume during the calendar year 2024. According to the data from the Tractor and Mechanisation Association, domestic volume in 2024 declined 1.5% on a year-on-year basis to 9.02 lakh units.
While the domestic industry volume experienced a slight decline, ...
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India’s tractor industry witnessed a marginal decline in its wholesale volume during the calendar year 2024. According to the data from the Tractor and Mechanisation Association, domestic volume in 2024 declined 1.5% on a year-on-year basis to 9.02 lakh units.
While the domestic industry volume experienced a slight decline, export volumes registered a modest increase. Exports in 2024 grew 1.6% on year to 97,745 units. Total tractor sales, including domestic and exports, were down 1.2% during the year at 9.99 lakh units.
Robust sales growth in the second half of the year enabled the industry to contain the decline to a minimal extent. Domestic sales plunged almost 10% between January and June, while the sales bounced back in the second half with a 7.5% growth.
A strong show in the festive month of October with a sales growth of around 22% boosted the volumes in the second half. This came as the second half witnessed favorable conditions on the back of a strong monsoon and higher minimum support prices. These factors collectively enhanced rural demand and purchasing power.
Tractor makers and industry experts highlighted the visibility of some green shoots for the tractor industry with surplus rainfall, reservoir level, growth in kharif output, hike in minimum support price of key rabi crops such as wheat and mustard, government spending on rural development and positive terms of trade for farmers.
Domestic volume in December rose around 14% to 50,993 units. The sales during the current financial year, April to December, came in at 739,047 units, up 5% on year.
Despite seeing virtually no growth in the first half of the financial year, key players expect the second half to deliver volume growth of 13-15%. Mahindra & Mahindra has projected the industry volume to grow by 6-6.8% in the current financial year while Escorts Kubota is expecting a mid-single-digit growth.
In 2023, the domestic tractor sales were almost flat, experiencing a very marginal decline to 9.15 lakh from 9.12 lakh units.
The production of tractors in 2024 were also down 0.4% on year at 982,146 units.
However, the data shared by the Federation of Automobile Dealers Associations earlier this week showed that the retail sales of tractors in 2024 were at an all-time high. The sales rose 2.6% to 8.94 lakh units. M&M was the market leader with a market share of 42%, followed by Sonalika Tractors and TAFE with a share of 13% and 11.5%, respectively.