Mahindra Sees Record Tractor Sales in FY25, 34% Jump in March 2025

Mahindra & Mahindra Ltd.'s Farm Equipment Sector (FES), part of the Mahindra Group, has reported its highest-ever annual domestic tractor sales of 407,094 units for fiscal year 2025, representing a 12% growth over the previous year's 364,526 units. The strong performance was capped by a robust March showing, with domestic sales jumping 34% to 32,582 units compared to 24,276 units in March 2024.

"We have achieved our highest ever tractor sales in F25 with a growth of 12%. This is driven by very strong retail sales across the country and lowest ever dealer channel inventory," said Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd.

Total tractor sales, including exports, reached 424,641 units for the fiscal year, a 12% increase over FY2024. Export performance was particularly strong, with 17,547 units shipped overseas during the year, marking a 27% growth. For March alone, exports grew by 35% to 2,352 units.

The impressive March performance follows the positive momentum seen in February 2025, when Mahindra had reported a 19% growth in tractor sales. During that month, the company sold 27,735 units in the domestic market compared to 23,298 units in February 2024. At that time, Sikka had attributed the growth to "good progress of the rabi harvesting season" and "improved cash flow with the farming community," factors that have continued to boost sales into March.

Industry competitor Escorts Kubota has also reported strong performance for March 2025, with domestic tractor sales reaching 13,210 units, a 15% growth over the 11,465 units sold in March 2024. Their total sales, including exports, stood at 13,819 units, representing a 13.4% growth. According to Escorts Kubota, the growth was driven by "pent-up demand from the previous month" and improved finance availability.

Commenting on the current market conditions, Sikka noted, "The tractor industry has been witnessing good momentum on account of favorable weather conditions, good reservoir levels, strong rabi outlook and positive terms of trade for farmers. Harvest season has commenced in the northern regions and is expected to progress smoothly across the country."

The broader agricultural machinery sector is experiencing a positive trend, with industry experts pointing to several factors driving growth. These include favorable government policies supporting farm mechanization, improved rural infrastructure, and increasing awareness among farmers about the benefits of modern agricultural equipment.

Looking ahead, Sikka expressed optimism about the near-term outlook, stating, "Delivery momentum picked up in the last week of March on account of festivities and momentum is expected to continue in Q1 FY26 on expectation of very good Rabi crop harvest and improved cash flow in the hands of the farmers."

Mahindra, which holds the distinction of being the world's largest tractor company by volume, continues to strengthen its leadership position in the farm equipment segment. The company's strong performance comes amid increasing competition in the sector, with both domestic and international players expanding their presence in the Indian market.

Industry analysts note that the record sales achieved by major tractor manufacturers signal a positive shift in India's agricultural sector, with farmers increasingly investing in mechanization to improve productivity and reduce dependence on manual labor. As rural incomes continue to rise and government support for agriculture remains strong, the outlook for the farm equipment industry appears promising for the remainder of 2025.