MUMBAI, 1 January 2025: Mahindra & Mahindra Ltd.’s Farm Equipment Business (FEB) recorded a sharp rebound in tractor demand in December 2025, underscoring improving rural sentiment and strengthening fundamentals in India’s agricultural machinery market, according to a company statement released on 1 January 2026.
The Mumbai-headquartered manufacturer sold 30,210 tractors in the domestic market during December, representing a 37% year-on-year increase from 22,019 units sold in the same month last year. Total tractor sales, including exports, rose 39% year-on-year to 31,859 units, compared with 22,943 units in December 2024.
Exports emerged as a key growth lever during the month, with volumes jumping 78% year-on-year to 1,649 units. Management attributed the strong export performance to improved demand across select international markets and continued traction for Mahindra’s value-driven tractor portfolio. Export figures include completely knocked down (CKD) units.
On a year-to-date basis (April–December FY26), domestic tractor sales reached 391,890 units, marking a 21% increase over the corresponding period in FY25. Total tractor sales for the same period stood at 406,592 units, also up 21% year-on-year, while exports rose 20% to 14,702 units.
Veejay Nakra, President – Farm Equipment Business at Mahindra & Mahindra, said the December performance was supported by improving cash flow availability in rural markets following favourable Kharif crop yields. He added that conducive weather conditions and healthy reservoir levels have led to higher Rabi sowing acreage, which is expected to support tractor demand over the coming months.
Industry participants note that tractor demand in India is closely linked to farm incomes, liquidity conditions and monsoon patterns. The strong December showing suggests a stabilisation in rural purchasing power after a mixed start to the fiscal year, potentially setting a positive tone for the remainder of FY26.
From a competitive standpoint, Mahindra continues to maintain its leadership position in the domestic tractor market, leveraging a broad product range, extensive distribution network and strong brand equity. Analysts tracking the sector expect near-term demand momentum to remain steady, supported by government spending on rural infrastructure, credit availability and sustained agricultural activity, although input cost pressures and global macro uncertainties remain key variables to watch.
