June tractor volumes growth was supported by the early onset of rains and healthy agricultural activity
After a gap of eight months, tractor sales breached the one-lakh mark in June, thanks to the timely arrival of monsoon, good rabi crop harvest and improvement in kharif crops. In June, tractor sales were up 10 per cent to 1,21,613 units as against 1,10,348 in the same month last year, and increased 22 per cent over May, according to Tractor and Mechanisation Association data.
Prior to this, sales crossed one lakh units in October 2024, and dropped for four consecutive months, and bounced back from March this year, the data show.
June tractor volumes growth was supported by the early onset of rains and healthy agricultural activity, said a report from Anand Rathi Research. Rural markets, the monsoon, rabi output, cash flow, better interest rates and higher disposable incomes, thanks to tax cuts, would improve momentum, it added.
July to be better
Veejay Nakra, President – Farm Equipment Business, Mahindra & Mahindra, in a release said record foodgrain production — especially rice, wheat and pulses — coupled with various government initiatives to improve farmer income are expected to augur well for tractor demand in the coming months.
“In the exports market, we have sold 1,623 tractors, a growth of 13 per cent over last year,” he said. “We have sold 51,769 tractors in the domestic market during June, a growth of 13 per cent over last year,” said the release.
A statement by Escorts Kubota said that timely arrival of South-West monsoon, improvement in sown area for the kharif crops and announcement of higher minimum support prices by the government for the kharif season have collectively helped uplift farmers’ sentiment.
“Moving forward with prediction of above-normal monsoon, higher water reservoir levels, anticipated record kharif harvest and resultant improved liquidity conditions in rural markets, the industry will continue to grow in the rest of the year as well,” the statement said.
Escorts Kubota sold 11,498 tractors in June (11,245 tractors), a 2.2 per cent growth, it added.
Published on July 9, 2025