India’s domestic tractor market saw a sharp decline in July 2025, with sales down 43% from June’s peak, even as year-on-year growth remained positive at 8%, driven by healthy rural sentiment and good monsoon progress.
According to the Tractor and Mechanization Association (TMA), domestic tractor sales stood at 64,320 units in July 2025, compared with 59,529 units in the same month last year. This was significantly lower than the 112,677 units sold in June 2025, when the industry delivered its strongest monthly performance since October 2024. Exports in July fell 5% on-month to 8,477 units, from 8,936 units in June.
Experts attribute the sharp month-on-month drop to seasonal factors. “June typically benefits from post-rabi harvest liquidity and peaks in tractor buying, while July sees a natural slowdown before the kharif season picks up pace,” said an expert. Analysts expect tractor demand to improve, supported by festivals and favorable monsoon conditions.
The country’s largest tractor manufacturer, Mahindra & Mahindra sold 26,990 units in the domestic market in July, up 5% from 25,587 units a year earlier. Including exports of 1,718 units, total sales were 28,708 units, compared with 27,209 units in July 2024.
Veejay Nakra, President, Farm Equipment Business, Mahindra & Mahindra Ltd. said, “This performance was driven by sustained land preparation activities, supported by robust cash flows in rural markets following the conclusion of rabi crop harvesting. Additionally, the normal progression of monsoon across most regions further contributed to good demand during the onset of sowing for the kharif season.”
Escorts Kubota Limited’s Agri Machinery Business sold 7,154 tractors in July 2025, up 2.7% from 6,963 units a year ago. Domestic sales were at 6,624 units, a 1.3% increase from last year’s 6,540 units. The company said timely, widespread, and above-normal rains, coupled with higher reservoir levels, had boosted farmer sentiment and cash flows. “While commercial demand remains soft, agriculture demand is holding steady,” the company noted, adding that kharif sowing had already surpassed last year’s sown area.
The tractor industry is also awaiting clarity on the implementation of TREM-V emission norms. Bharat Madan, Whole Time Director and Chief Financial Officer at Escorts Kubota Ltd. (EKL) and Chairman of the Finance Committee at TMA, earlier told Autocar Professional, “The government is considering implementing TREM-V standards for tractors below 25 HP and above 50 HP, in line with TMA’s recommendations. A final decision is expected by the middle of August.” In India, the tractor market is largely dominated by models under 50 HP, while developed markets such as Europe have stronger demand for higher horsepower tractors, typically above 50 HP.