Tractor sales continue its upward trajectory for third consecutive month

Tractor sales continued its upward trajectory since March with a 10 per cent increase in May to 99,430 units against 90,280 units in April, according to The Tractor and Mechanization Association data. Out of the total sales in May, export was 8,930 units, the data said.

Advance monsoon, good levels in the reservoirs and strengthening of the rural demand have led to the increased sales. If the current trend continues, tractor sales could once again break the 1,00,000 mark in June, as witnessed earlier in October 2024, said sources.

Timely monsoon

Escorts Kubota Ltd Agri Machinery Business Division in a release said that timely onset of the monsoon season has uplifted spirits on the ground. “Agricultural activities for the upcoming Kharif crops are set to begin as planned. Moving forward, we anticipate that this positive momentum will persist, driven by above normal monsoon, sufficient water reservoir levels and improved liquidity.”

In May, the company sold 10,354 tractors as against 10,286 units in May 2024. Domestic sales were at 9,703 tractors (9,906) . Export was at 651 tractors (380).

Veejay Nakra, President, Farm Equipment Business, Mahindra & Mahindra Ltd, said the early advancement of above normal southwest monsoon should bode well for kharif sowing. “Land preparation activities are progressing well for paddy sowing. Approval of hike in MSP for paddy and other kharif crops will bring positive sentiments among farmers. Better reservoir levels , government announcement of record foodgrain production and introduction of various schemes will help farmers aim higher productivity, going forward and in turn augur well for tractor demand,” he said.

Mahindra & Mahindra

Mahindra & Mahindra Ltd’s Farm Equipment Business recorded domestic sales of 38,914 units in May 2025 as against 35,237 units in the same month last year. Exports stood at 1,729 units in May 2025.

Tractor OEMs hope to see high single-digit growth for FY26 given positive rural sentiments, said Motilal Oswal.

As real agricultural and rural wages picked up in the fourth quarter and inflation slowed considerably, tractor sales accelerated compared with the previous quarter, Crisil said.