Mahindra & Swaraj Strengthen Grip in FY25 Tractor Market Report

Mahindra & Swaraj Strengthen Grip in FY25 Tractor Market Report

01 May 2025, New Delhi: The Indian tractor industry, a crucial component of the country’s agricultural backbone, witnessed a marginal decline of 1% in overall sales during the financial year 2024-25 (April 2024 to March 2025), according to data released by the Federation of Automobile Dealers Associations (FADA). A total of 8,83,095 tractor units were sold during FY25, compared to 8,92,410 units sold in FY24. Despite the slight dip, market leaders such as Mahindra & Mahindra (including its Swaraj division) and International Tractors Limited (Sonalika) have shown resilient growth, reinforcing confidence in the sector’s future performance.

Mahindra & Mahindra Continues to Lead the Pack

Mahindra & Mahindra Limited, the largest tractor manufacturer in India, retained its dominant position in the market by selling 2,08,114 units in FY25, a 2% increase over the 2,04,726 units sold in FY24. Its market share also improved slightly from 22.94% to 23.57%, underscoring the brand’s continued trust among Indian farmers. Mahindra has strategically built a reputation for durability, localised service networks, and innovation in technology, which has enabled it to maintain a stronghold even in challenging market conditions.

Notably, Mahindra’s Swaraj Division also posted robust growth. The Swaraj brand, which holds a strong presence in rural India due to its traditional brand value and affordability, recorded sales of 1,65,562 units in FY25 — a 3% increase from the 1,59,997 units sold the previous year. Its market share grew from 17.93% to 18.75%, marking it as the second-largest player in the Indian tractor industry. Together, Mahindra’s combined tractor sales crossed 3.73 lakh units, accounting for over 42% of the total market.

International Tractors Limited Holds Third Spot with Steady Growth

International Tractors Limited, the makers of Sonalika tractors, ranked third in the pecking order, selling 1,15,198 units in FY25, up 1% from 1,14,228 units in FY24. The company’s market share also edged up from 12.80% to 13.04%. Sonalika has been gaining ground consistently due to its expanding product portfolio, competitive pricing, and increasing export footprint. Its ability to deliver fuel-efficient and technologically advanced models tailored for Indian conditions has helped it retain a solid customer base.

Market Contraction for Several Key Players

While the top three brands performed well, several other prominent tractor manufacturers reported a decline in sales. TAFE Limited, known for its Massey Ferguson and Eicher-branded tractors, witnessed a sharp 8% drop in its year-on-year performance, selling 99,286 units in FY25 as against 1,08,106 units in FY24. This reduced its market share from 12.11% to 11.24%. The decline could be attributed to a combination of delayed monsoons, tightened rural liquidity, and competitive pressure from other OEMs.

Similarly, Escorts Kubota Limited (Agri Machinery Group) sold 87,628 units in FY25, down by 2% from 89,832 units in FY24. Its market share slightly declined from 10.07% to 9.92%. Despite the decrease, Escorts remains a strong contender with a solid brand legacy, and its recent partnership with Kubota is expected to bring in product synergies and new technologies that may bolster its future prospects.

John Deere India Pvt Ltd’s tractor division was a notable outlier in terms of positive growth outside the top three. The company recorded a 6% growth in sales, increasing from 63,620 units in FY24 to 67,518 units in FY25. This growth pushed its market share from 7.13% to 7.65%. John Deere’s focus on premium, high-performance tractors and its strong after-sales support may have helped it appeal to progressive farmers and large landholders, especially in states like Punjab and Maharashtra.

Eicher Tractors, a brand under TAFE, also reported a decline of 4%, selling 57,213 units in FY25 compared to 59,538 in the previous year. CNH Industrial (India) Pvt Ltd, which retails New Holland and Case IH tractors, sold 35,763 units in FY25 — a slight decrease of 1% from 36,236 units in FY24.

Kubota Agricultural Machinery India Pvt. Ltd., despite its global reputation for high-end compact and mid-range tractors, faced the steepest decline among major players with a 15% drop in sales. The company sold 15,033 units in FY25, down from 17,691 in FY24. Its market share also fell from 1.98% to 1.70%. The high cost of Kubota tractors and their limited appeal among small and marginal farmers in India may have contributed to this dip.

The ‘Others’ category — comprising smaller and regional players — saw a significant decline of 17%, dropping from 38,436 units to 31,780 units in FY25. This could reflect both consolidation in the market and growing customer preference for established brands with proven service networks.

Sector Outlook and Way Forward

While FY25 closed with a 1% contraction in tractor sales, industry insiders and analysts remain cautiously optimistic about the future. The marginal decline must be seen in the context of multiple challenges — including erratic monsoons, rural inflation, and tightening credit flow — that affected rural consumption during the year. Despite this, top players managed to expand or hold their market share, indicating the inherent resilience of the sector.

FADA’s insights suggest that with expectations of a normal monsoon in FY26, improved farm income due to stable MSP policies, and government incentives for mechanisation, the tractor market is poised for recovery. Additionally, a growing trend among small and medium farmers to lease tractors for specific tasks, along with the expanding use of tractors beyond agriculture — for haulage, infrastructure, and commercial purposes — is expected to drive long-term demand.

The focus on precision farming, increasing demand for technologically equipped tractors, and better financing solutions could further help drive growth. Brands that can innovate while maintaining affordability, and extend their rural service reach, are likely to stay ahead in this competitive landscape.

The tractor market in India continues to reflect the broader trends in rural and agricultural economics. Even as total sales dipped slightly in FY2024-25, the consistent performance of leaders like Mahindra & Mahindra, Swaraj, and Sonalika paints a picture of stability and consumer trust. With market fundamentals expected to improve in the coming fiscal year, and with key players already showing signs of adaptability and innovation, the Indian tractor industry may be gearing up for a strong rebound.

Brand-wise sales of tractor in India (FY 2024-25 vs FY 2023-24)

Tractor OEM	FY’25	Market Share(%) FY’25	FY’24	Market Share(%) FY’24	Growth
MAHINDRA & MAHINDRA LIMITED (TRACTOR)	2,08,114	23.57%	2,04,726	22.94%	2%
MAHINDRA & MAHINDRA LIMITED (SWARAJ DIVISION)	1,65,562	18.75%	1,59,997	17.93%	3%
INTERNATIONAL TRACTORS LIMITED	1,15,198	13.04%	1,14,228	12.80%	1%
TAFE LIMITED	99,286	11.24%	1,08,106	12.11%	-8%
ESCORTS KUBOTA LIMITED (AGRI MACHINERY GROUP)	87,628	9.92%	89,832	10.07%	-2%
JOHN DEERE INDIA PVT LTD (TRACTOR DEVISION)	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%

Also Read: Coromandel International Announces Financial Results; Crop Protection Revenue Reaches Rs. 2,635 Cr

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