Mechanization and Technology

Tractor Sales Surge in September 2024: Mahindra & John Deere Lead the Way

08 October 2024, New Delhi: The Indian tractor market witnessed a notable rebound in September 2024, reversing a two-month decline in sales. According to data from the Federation of Automobile Dealers Associations (FADA), total tractor sales in September stood at 62,542 units, marking a 14.7% growth compared to 54,529 units sold in September 2023. This resurgence is expected to continue through October due to the festive season of Diwali, further boosting demand.

A Closer Look at the Sales Surge

The increase in tractor sales in September 2024 comes after a significant dip in the previous two months, where sales had seen a downturn, particularly in August 2024, which recorded 65,478 units. The recovery in September is largely driven by expectations of better farm yields due to favorable monsoon patterns, as well as a strong festive buying trend in October, expected to spill into early November.

Market Leaders: Mahindra & Mahindra’s Dominance

Mahindra & Mahindra Limited (M&M) emerged as the market leader once again, selling 14,762 units in September 2024, securing a commanding 23.60% market share, up from 23.11% in September 2023. This translates to a solid year-on-year growth of over 2,100 units. The company’s Swaraj division followed closely with 11,011 units sold, contributing an additional 17.61% to the market share, although slightly down from 18.08% a year ago.

Mahindra’s performance is driven by its wide range of offerings and strong after-sales service, which has continued to appeal to small and medium-scale farmers across India.

Who Gained the Most?

One of the biggest gainers in September 2024 was John Deere India Pvt Ltd, which recorded an impressive 28% increase in sales compared to the same period in 2023. The company sold 4,843 units, up from 3,775 in September 2023, raising its market share from 6.92% to 7.74%. The growth reflects the increasing acceptance of John Deere’s technologically advanced tractors, which cater to more sophisticated farming needs in several states.

International Tractors Limited, the makers of the Sonalika brand, also saw a notable growth with 8,116 units sold in September 2024, compared to 7,061 units in the same period last year. Their market share slightly increased from 12.95% to 12.98%.

Another brand that gained in sales but slightly lost market share is Escorts Kubota Limited (Agri Machinery Group). The company saw its sales rise from 5,832 units in September 2023 to 6,313 units in 2024. However, their market share dipped marginally from 10.70% to 10.09%, indicating strong competition in the mid-tier tractor segment.

Declining Performers: Swaraj & Eicher See Slumps

While the overall market experienced growth, some companies struggled to maintain their share. Mahindra & Mahindra’s Swaraj Division, despite being the second largest player, saw a slight decline in its market share from 18.08% in September 2023 to 17.61% in September 2024. This decline comes despite an increase in unit sales, indicating that competitors are making inroads into Mahindra’s stronghold.

Eicher Tractors also reported a minor decline in market share, down from 6.87% in September 2023 to 6.08% in September 2024. Although sales increased by just 59 units, it wasn’t enough to keep up with the overall market growth, causing a market share dip.

TAFE Limited, one of the major players, sold 7,285 units in September 2024, slightly increasing its sales from 6,869 units in September 2023. However, its market share fell from 12.60% to 11.65%, continuing a downward trend.

Smaller Players: Steady Growth with Kubota Leading the Charge

In the smaller players’ segment, CNH Industrial (India) Pvt Ltd saw a notable increase in market share, rising from 3.49% in September 2023 to 4.04% in September 2024. CNH sold 2,525 units this September, compared to 1,901 units the previous year, reflecting a strong 32.8% increase in sales.

Kubota Agricultural Machinery India Pvt Ltd also experienced growth, selling 1,201 units in September 2024, up from 919 units in September 2023, reflecting a market share increase from 1.69% to 1.92%. Kubota’s growth highlights the increasing acceptance of international brands in the Indian market.

The Road Ahead: October and Beyond

The festive season of Diwali is expected to further drive tractor sales in October, as this is traditionally a high-demand period for agricultural equipment. Farmers often make big-ticket purchases during this time, anticipating better crop yields and using government subsidies and incentives. The spillover effect of Diwali sales is also expected to push figures into the first week of November.

Moreover, with the rabi sowing season beginning soon after, demand for tractors and other farm machinery is expected to remain robust throughout the remainder of the year. Government policies around subsidies and minimum support prices (MSP) will also play a critical role in shaping tractor demand in the upcoming months.

Strong Prospects for the Tractor Industry

The rebound in tractor sales in September 2024 indicates positive momentum in the agricultural machinery market. As leading brands like Mahindra & Mahindra, John Deere, and International Tractors continue to dominate, the competition among players is heating up, with international brands like CNH and Kubota gaining a foothold in India’s rural heartland.

With the festive season and the onset of the rabi season, industry experts predict that tractor sales will maintain their upward trajectory to maintain sales at a similar level of 2023, provided that favorable farming conditions continue and government policies remain supportive. The October sales figures will be crucial in determining if the industry can sustain its recent growth surge.Tractor Sales in India During the Month of September 2024

Tractor OEMSEP’24Market Share (%) SEP’24SEP’23Market Share (%) SEP’23Growth
MAHINDRA & MAHINDRA LIMITED (TRACTOR)14,76223.60%12,60423.11%17%
MAHINDRA & MAHINDRA LIMITED (SWARAJ DIVISION)11,01117.61%9,86018.08%12%
INTERNATIONAL TRACTORS LIMITED8,11612.98%7,06112.95%15%
TAFE LIMITED7,28511.65%6,86912.60%6%
ESCORTS KUBOTA LIMITED (AGRI MACHINERY GROUP)6,31310.09%5,83210.70%8%
JOHN DEERE INDIA PVT LTD (TRACTOR DEVISION)4,8437.74%3,7756.92%28%
EICHER TRACTORS3,8046.08%3,7456.87%2%
CNH INDUSTRIAL (INDIA) PVT LTD2,5254.04%1,9013.49%33%
KUBOTA AGRICULTURAL MACHINERY INDIA PVT.LTD.1,2011.92%9191.69%31%
Others2,6824.29%1,9633.60%37%
Total62,542100%54,529100%15%

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