Tractor Sales Up 36% in February, Exports Continue to Grow

Domestic tractor sales saw a 36% year-on-year jump in February, supported by strong rabi sowing, as per data shown by the Tractor and Mechanization Association (TMA). However, total sales dipped 2.9% from January 2025. Despite this, exports continued their upward trend, growng both annually and monthly, maintaining the sector’s overall momentum.

As per the TMA, 58,797 units were sold in the wholesale market in February 2025, compared to 43,277 units sold in the same month last year. However, compared to the previous month, February's domestic sales dropped by 5%.

Exports maintained a growth trajectory, with a 5.5% year-on-year rise at 8,954 units sold this month, while they increased 14% month-on-month.

India's largest tractor manufacturer, Mahindra & Mahindra, recorded domestic sales of 23,880 units in February, a rise of 18.7% year-on-year. “After a good kharif crop, the rabi crop outlook is also looking positive due to favorable weather conditions. An increase in the Agri credit limit, continued government support to increase farmer incomes, and a bumper rabi harvest will help boost tractor demand going forward," said Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra Ltd. With the financial year 2025 nearly over, M&M's domestic sales have reached 374,512 units so far, marking a 10% year-on-year increase in February.

Escorts Kubota's domestic tractor sales increased by 9.6%, with 7,968 tractors sold in February 2025, while exports rose to 622 units, compared to 440 units in the year-ago period. "With increased rabi sowing, good water reservoir levels, and a favorable base effect, we anticipate growth momentum to continue in the coming months," the company said in a regulatory filing.

Similarly, Sonalika Tractors recorded overall sales of 10,493 units this month, higher than the 10,350 units sold in January.

While the year-on-year sales number has increased, total tractor production has dropped to 65,996 units in February 2025. It is 7.8% down year-on-year from February 2024 and 28.7% down month-on-month from January 2025.

India's tractor industry saw a slight dip in wholesale volume in 2024, with domestic sales falling 1.5% year-on-year to 9.02 lakh units, as per TMA data.

The data released by the Federation of Automobile Dealers Association showed a downward trend in February, with tractor retail sales falling by 14.5% year-on-year and 29.8% month-on-month to 65,574 units.

“February witnessed a broad-based downturn across all categories, a trend that was anticipated in our previous survey, which projected a ‘Flat to De-growth’ sentiment for the month," FADA President CS Vigneshwar said. "During the month, dealers began expressing concerns about inventory being pushed to them without their consent," he added.

However, with overall positive sentiment, industry players expect sales to reach 1 million in the upcoming financial year.