Neutralised El Nino Effect! Tractor Sales To Hit New Highs

As India is expected to receive a normal monsoon this year, according to the India Meteorological Department, thanks to a neutralised El Nino effect (a climate pattern that induces a weaker rainfall), tractor sales is expected to go up to one million units in FY2025-26.

With a normal monsoon, a strong rabi and kharif crop is expected, which in turn will place a higher disposable income in the hands of farmers. This would augur well for tractor sales, say industry experts.

Mahindra and Mahindra that leads in the tractor segment posted its highest sales in FY25 with a YoY growth of 12 per cent at 4,07,094 units. This was driven by strong retail sales across the country with its lowest ever dealer channel inventory, according to the company. In March 2025, M&M grew over 34 per cent to 32,582 units as against 24,276 units in the same period last year. 

Escorts Kubota Agri Machinery division too posted domestic tractor sales of 1,10,563 units in FY25, up from 1,08,777 units in FY24, a marginal rise of 1.6 per cent. However, exports declined by 11.2 per cent.

“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," says Hemant Sikka, president – Farm equipment sector, Mahindra & Mahindra.  He expects the delivery momentum to pick up in the last week of March on account of festivities and that will continue in Q1 FY26 on expectation of very good rabi crop harvest and improved cash flow in the hands of the farmers.

Last year, the overall domestic tractor sales posted a 7 per cent drop at 8,74,504 units, according to Tractor Junction. In FY23 the sales were at 9,40,985 units.