Bumper harvest: Tractor sales grow 20% to 11L in ’25

CHENNAI: The Indian tractor industry closed 2025 on a high note, with annual domestic volumes crossing the one-million-unit mark for the first time in its history. Exports also rebounded strongly, crossing the onelakh-unit milestone after a two-year gap.

Total domestic tractor sales touched 10.9 lakh units in 2025, compared with 9.1 lakh units in 2024, posting strong double-digit growth of 20%, according to data from the Tractor & Mechanisation Association (TMA).

A combination of factors helped the industry sustain strong momentum, with major contributors being favourable agricultural conditions and a cut in the GST rate on tractors.

Rating agency ICRA noted that the 2025 southwest monsoon season concluded with rainfall at 108% of the long-period average, providing a generally favourable base for the farm economy. While rainfall distribution was uneven, overall adequate precipitation supported crop sowing and yield expectations, contributing to healthier farm cash flows and positive rural sentiment.

In addition, the reduction of the GST rate to 5%, effective Oct, led to a decline in tractor prices, with savings ranging from about Rs 40,000 to Rs 1,00,000 across different horsepower segments, making new tractors more affordable, it added. In Dec 2025, domestic tractor sales stood at 69,890 units, compared with 50,993 units in Dec 2024 and 92,742 units in Nov 2025.