• English
  • Login / Register

Tractor Sales Fell By 1.5% In 2024, Tractor Sold 901,668 Units - Bright Outlook For 2025

Published On Jan 28, 2025 08:46 PMBy Shristi Nagar

Growth during the 2024–25 fiscal year is estimated to be 6-7 percent.

Tractor Sales Drop 1.5% in 2024

Key Highlights

  • Tractor sales fell by 1.5% to 901,668 units in 2024, driven by weaker demand in the first half of the year (TMA data).

  • Pre-monsoon showers, strong monsoons, and higher minimum support prices boosted rural demand.

  • Robust southwest monsoons, favorable El Niño conditions, and increasing crop acreage are expected to boost tractor sales and industry performance in 2025.

According to data from the Tractor and Mechanisation Association, a drop in demand in the first half of 2024 caused tractor sales to slightly reduce by 1.5% to 901,668 units. 

However, things improved in the second half, and rabi crop acreage is now backed by healthy reservoir levels, which bodes well for this year.

Mahindra & Mahindra's president of the farm equipment division, Hemant Sikka, told Business Standard that between April and December 2024, tractor sales rose 5% annually. The pre-monsoon showers that arrived along the West Coast at the right time helped to encourage this growth and gave the kharif planting season a boost.

"Healthy reservoir levels have sustained the rabi crop acreage. Tractor sales are predicted to increase in Q4 due to a positive view for the rabi season, and we anticipate that the industry will complete the year with a growth expectation of 6–7%,” Sikka stated.

Sales of tractors increased by 22% to 144,675 units during the festive month of October, boosting tractor volumes. Volumes increased by about 14% to 50,993 units in December after a minor decline in November.

Rural purchasing power increased in the second part of the year due to higher minimum support prices and robust monsoons.

Thus, despite El Niño conditions at first, 2024 has been a lively year for the tractor sector, ultimately paving the way for robust monsoons. 

Raman Mittal Stated 

"The year 2024 has been a dynamic one for the tractor industry," noted Raman Mittal, joint managing director of International Tractors, the company that distributes tractors under the Sonalika brand. In the southern (38 percent), western (31 percent), and central (17 percent) regions, water reservoir levels above the 10-year average LPA.

According to Mittal, this plus the fact that kharif acreage hit a five-year record of 110.85 million hectares contributed to the industry's revival by fostering optimistic morale and generating strong tractor sales throughout the festival season.

In light of a low base year and a robust southwest monsoon, favourable El Niño conditions, which are usually linked to robust rabi crop production, are anticipated to considerably increase crop acreage this year. "Due to favourable market conditions and ongoing demand, we anticipate the industry to remain positive in Q4," Mittal stated.

Latest Models

  • Tractors
  • Mini Tractors

Popular Models

  • Tractors
  • Mini Tractors
×
Which is your city ?