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Domestic Tractor Sales Reach Historic High in October 2024

Domestic tractor sales reached a historic high in October 2024, growing 23% to 144,675 units, with a strong outlook for H2.

Date: December 19, 2024

Domestic Tractor Sales Reach Historic High in October 2024

Chennai - Domestic tractor sales hit an all-time high in October 2024, driven by favorable factors like a strong monsoon and higher MSP for key crops, which boosted rural demand and purchasing power. The industry expects continued robust growth, potentially in double digits.

Domestic tractor sales raise by 23% to 144,675 units in October 2024, up from 118,232 units in October 2023. Sales also saw a 44% increase compared to 100,542 units in September 2024, according to the Tractor & Mechanisation Association (TMA).

Mr. Hemant Sikka, President of Farm Equipment Sector at Mahindra & Mahindra Ltd. (M&M), said, "The tractor industry’s strong growth is attributed to a combination of favourable factors. These include a good monsoon, a strong Kharif crop, high reservoir levels that will support the upcoming Rabi season, and the government’s announcement of higher MSP for essential Rabi crops."

M&M reported a 30% increase in October tractor sales, reaching 64,326 units, up from 49,336 units in October 2023. International Tractors (Sonalika brand) achieved its highest-ever monthly sales with 18,002 units, up from 15,662 units last year. Escorts Kubota saw a 23% growth in domestic sales, reaching 17,839 units, driven by favorable factors like festivals, higher MSP, and a strong monsoon.

Mr. Anish Shah, Group CEO & MD of Mahindra & Mahindra, said, "With strong demand driven by above-normal monsoons, M&M has revised its FY25 growth forecast from 5per cent to 6-7per cent. There has been a significant improvement in rural momentum over the past 6-7 weeks. As a result, we are revising our annual growth outlook to 6-7per cent, with an expected 13-15per cent growth in tractor sales in the second half of the year.”

Domestic Tractor SalesHistoric HighOctober 2024
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