India’s Tractor Market Eyes the 1 Million Mark: What Will It Take?
20 May 2025, New Delhi: India’s tractor industry, one of the largest in the world, closed FY 2024–25 with domestic sales of 8,83,095 units, a slight dip of 1% compared to 8,92,410 units in FY 2023–24. Despite the contraction, optimism persists across the agriculture machinery sector. Industry stakeholders are now turning their attention to an ambitious but achievable target: crossing the 1 million units annual sales milestone in the coming years.
To achieve this feat in just one year, the industry will need to clock an annual growth rate of 13.2%, translating to 1,16,905 additional units over the current volume. Alternatively, with consistent progress, the industry can reach the mark in two years with a steady 6.4% year-on-year growth.
But the journey from 8.8 lakh units to 10 lakh is not just a matter of sales—it hinges on better monsoon patterns, policy support, rural credit availability, and deeper mechanisation in underpenetrated markets like eastern India.
Mahindra Leads the Charge
In FY 2024–25, Mahindra & Mahindra Ltd (Tractor Division) emerged as the market leader by a significant margin, selling 2,08,114 tractors, which accounts for 23.57% of total industry sales. This represents a 2% growth from the previous year’s figure of 2,04,726 units, further strengthening the company’s dominant position.
Mahindra’s Swaraj Division also performed well, recording a 3% growth, with 1,65,562 units sold in FY’25, up from 1,59,997 in FY’24. Combined, the two arms of Mahindra account for over 42% of the market, making the brand a crucial driver in any conversation about breaching the 1 million mark.
Top Three Brands Performing Strongly
International Tractors Limited, makers of the Sonalika brand, secured the third spot with 1,15,198 units sold, marking a 1% increase over FY’24. Their continued growth, although moderate, signals steady demand and brand acceptance in both traditional and emerging markets.
These three players—Mahindra (Tractor + Swaraj) and Sonalika—together contributed nearly half of India’s total tractor sales this fiscal year, demonstrating the brand power and dealership strength required to drive mass adoption.
Mixed Bag for Other Manufacturers
TAFE Limited, known for its Massey Ferguson and Eicher brand (agri segment), saw an 8% decline, dropping from 1,08,106 units in FY’24 to 99,286 in FY’25. The contraction was notable but reflects high-base normalization rather than weak performance.
Escorts Kubota, another major player, witnessed a 2% decline, selling 87,628 units as compared to 89,832 units last year. Similarly, Eicher Tractors dropped by 4%, and CNH Industrial by 1%.
In contrast, John Deere India reported the highest growth rate among the top players with a 6% increase, moving from 63,620 units in FY’24 to 67,518 units in FY’25. Its premium segment appeal and precision farming approach are helping it expand its footprint despite high price points.
Current Standings: FY 2024–25 Sales Performance
| Tractor OEM | FY’25 Sales (Units) | Market Share FY’25 | FY’24 Sales (Units) | Market Share FY’24 | Growth |
| Mahindra & Mahindra Ltd (Tractor Division) | 2,08,114 | 23.57% | 2,04,726 | 22.94% | 2% |
| Mahindra & Mahindra Ltd (Swaraj Division) | 1,65,562 | 18.75% | 1,59,997 | 17.93% | 3% |
| International Tractors Ltd (Sonalika) | 1,15,198 | 13.04% | 1,14,228 | 12.80% | 1% |
| TAFE Ltd | 99,286 | 11.24% | 1,08,106 | 12.11% | -8% |
| Escorts Kubota Ltd | 87,628 | 9.92% | 89,832 | 10.07% | -2% |
| John Deere India Pvt Ltd | 67,518 | 7.65% | 63,620 | 7.13% | 6% |
| Eicher Tractors | 57,213 | 6.48% | 59,538 | 6.67% | -4% |
| CNH Industrial (India) Pvt Ltd | 35,763 | 4.05% | 36,236 | 4.06% | -1% |
| Kubota Agricultural Machinery India Pvt Ltd | 15,033 | 1.70% | 17,691 | 1.98% | -15% |
| Others | 31,780 | 3.60% | 38,436 | 4.31% | -17% |
| Total | 8,83,095 | 100% | 8,92,410 | 100% | -1% |
The Road to 1 Million: What Needs to Be Done
To achieve the 1 million unit milestone in FY 2025–26 itself, the industry would need to grow by approximately 13.2% year-on-year. That is a substantial leap for a market that has just experienced a marginal decline. However, a 6.4% annual growth rate for two consecutive years would also get the industry there by FY 2026–27.
Policy support from the government in the form of increased subsidies, easier access to rural credit, and promotion of farm mechanisation schemes will be essential. Custom Hiring Centres (CHCs) can play a pivotal role, especially for small and marginal farmers who cannot afford outright tractor purchases. By enabling shared access to tractors and machinery, CHCs can bridge the ownership gap and boost utilisation. Expanding these centres across states with low mechanisation levels, particularly in eastern and northeastern India, will be critical.
Credit accessibility remains another major lever. Farmers must have access to affordable and timely financing options through formal institutions. Encouraging banks and NBFCs to ease lending norms and offer flexible repayment terms tied to cropping cycles can improve tractor adoption.
A normal and well-distributed monsoon is always a vital factor for tractor sales, given the strong link between rainfall, cropping patterns, and rural sentiment. Any improvement in irrigation coverage, water availability, or rainfall reliability will boost demand. Moreover, the industry’s ability to promote rental models, group ownership, and “pay-per-use” tractor services—especially in states with fragmented landholdings—can increase the reach of tractors without relying entirely on direct purchases.
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