Mahindra Tractor Sales Rise 37% in December as Farm Demand Improves

Mahindra & Mahindra closed December 2025 with a strong showing in its farm equipment business, as domestic tractor sales jumped sharply on the back of better farm incomes and supportive agricultural conditions.

The company sold 30,210 tractors in the domestic market during December, compared to 22,019 units in the same month last year, marking a 37% year-on-year increase. Including exports, total tractor sales for the month stood at 31,859 units, up from 22,943 units in December 2024.

The numbers suggest that rural demand, which had remained uneven in parts of the year, is firming up as farmers head into the Rabi season.

Kharif Harvest Improves Cash Flow in Rural Markets

According to the company, December’s performance was largely driven by improved liquidity at the farm level following a healthy Kharif harvest. Better crop yields translated into stronger cash flows, allowing farmers to bring forward equipment purchases that had earlier been deferred.

Speaking on the sales performance, Veejay Nakra said that favourable weather conditions and adequate reservoir levels have also supported higher Rabi sowing acreage, which is expected to sustain tractor demand in the months ahead.

This combination of crop output, water availability, and seasonal buying tends to play a critical role in tractor sales, particularly in the December–March period.

Exports See Sharp Growth, Though Volumes Remain Smaller

While domestic demand continues to anchor Mahindra’s tractor business, exports also showed strong momentum. The company shipped 1,649 tractors overseas in December, representing a 78% increase year-on-year.

Export volumes remain significantly lower than domestic sales, but the sharp growth highlights improving demand in select international markets and Mahindra’s expanding footprint outside India.

Strong Performance For the Fiscal Year so Far

Looking at the broader picture, Mahindra’s tractor business has delivered consistent growth through the current fiscal year. For the April–December 2025 period, domestic tractor sales reached 3,91,890 units, up 21% from 3,24,327 units in the same period last year.

Including exports, total tractor sales stood at 4,06,592 units, compared to 3,36,623 units a year earlier. Exports for the nine-month period rose 20% year-on-year to 14,702 units.

These figures underline a steady recovery in rural demand rather than a short-term spike.

Market Leadership Remains Intact

Mahindra continues to hold its position as the world’s largest tractor manufacturer by volume and the market leader in India’s farm equipment segment. The company’s scale, wide product portfolio, and deep rural distribution network have helped it benefit quickly when farm sentiment improves.

Founded in 1945, Mahindra operates across multiple sectors including utility vehicles, IT services, and financial services, with operations spanning more than 100 countries. Within tractors, however, India remains its most critical market.

As the Rabi season progresses and government spending in rural areas continues, Mahindra expects demand conditions to remain supportive. Whether this momentum carries through the rest of FY26 will depend on crop prices, weather patterns, and rural credit availability — but December’s numbers point to a sector that is regaining confidence rather than merely catching up.