India’s tractor industry, among the largest globally, ended FY 2024–25 with domestic sales of 8,83,095 units, marking a modest 1 per cent decline from 8,92,410 units recorded in the previous fiscal year. While the dip reflects short-term headwinds, sentiment within the agri-machinery sector remains positive. Industry players are now setting their sights on a bold but attainable goal: surpassing the 1 million units annual sales mark in the near future

To hit the one-million-unit milestone within a single year, India’s tractor industry would need to register a robust 13.2 per cent annual growth, equivalent to an additional 1,16,905 units over current sales figures. A more gradual path is also within reach—sustained year-on-year growth of 6.4 per cent could see the industry cross the benchmark within the next two years, provided demand remains stable and supportive policies are in place.

However, the path from 880,000 to 1 million units depends on more than just sales growth. It requires favorable monsoon conditions, stronger policy backing, improved access to rural credit, and accelerated mechanization—particularly in underdeveloped regions such as eastern India.

In FY 2024–25, Mahindra & Mahindra Ltd’s Tractor Division maintained its lead in the Indian tractor market, selling 2,08,114 units—equivalent to 23.57 per cent of total industry sales. This marks a 2 per cent increase over the previous fiscal year’s 2,04,726 units, reinforcing Mahindra’s stronghold in the sector.

Meanwhile, Mahindra’s Swaraj Division also posted solid growth, with sales rising 3 per cent to 1,65,562 units in FY’25, up from 1,59,997 units the year before. Together, these two divisions capture more than 42 per cent of the market share, positioning Mahindra as a key player in the industry’s pursuit of the 1 million-unit milestone.

International Tractors Limited, the company behind the Sonalika brand, claimed the third position in the market by selling 1,15,198 units in FY 2024–25, reflecting a modest 1 per cent growth compared to the previous year. This steady rise highlights sustained demand and growing acceptance across both established and emerging markets.

Together, these three major players—Mahindra’s Tractor and Swaraj divisions along with Sonalika—accounted for nearly 50 per cent of India’s total tractor sales this fiscal year, underscoring their dominant brand presence and extensive dealership networks crucial for driving widespread adoption.

TAFE Limited, recognized for its Massey Ferguson and Eicher brands in the agricultural segment, experienced an 8 per cent decline in tractor sales, falling from 1,08,106 units in FY’24 to 99,286 units in FY’25. Industry experts suggest this drop largely reflects a high-base correction rather than a downturn in performance.

Escorts Kubota also saw a slight decrease, with sales dipping 2 per cent to 87,628 units from 89,832 units the previous year. Similarly, Eicher Tractors and CNH Industrial reported declines of 4 per cent and 1 per cent respectively.

In contrast, John Deere India posted the strongest growth among leading manufacturers, registering a 6 per cent increase in sales—from 63,620 units in FY’24 to 67,518 units in FY’25. The company’s focus on premium products and precision farming technologies is driving its expanding market presence despite higher price points.

To hit the 1 million tractor sales milestone by FY 2025–26, the industry must achieve a robust 13.2 per cent year-on-year growth—a significant challenge given the recent slight downturn. Alternatively, a steady growth rate of 6.4 per cent over two consecutive years could bring the sector to this target by FY 2026–27.

Government policy support will be crucial, including enhanced subsidies, improved rural credit access, and stronger promotion of farm mechanization initiatives. In particular, Custom Hiring Centres (CHCs) can be transformative for small and marginal farmers who cannot afford outright tractor purchases. By facilitating shared access to machinery, CHCs help bridge the ownership gap and optimize utilization, especially in low-mechanization regions like eastern and northeastern India.

Affordable and timely credit remains a critical enabler. Encouraging banks and non-banking financial companies to relax lending norms and align repayment schedules with cropping cycles will improve tractor affordability and adoption.

A normal, well-distributed monsoon continues to be a vital factor, as rainfall patterns heavily influence cropping decisions and rural purchasing power. Improvements in irrigation infrastructure and water availability would further bolster demand.

Finally, innovative ownership models—such as rental services, group ownership, and pay-per-use schemes—offer promising pathways to expand tractor access in areas with fragmented landholdings, reducing reliance on full ownership and enabling broader mechanization.