India’s tractor industry has achieved a major milestone, crossing the one-million-unit mark for production and sales between January and November 2025. This is the first time in the nation’s history that such a high number has been reached in just 11 months. Domestic tractor sales during this period reached 1.02 million units, a significant increase from 0.91 million units in the same period last year. Tractor production also saw record levels, hitting 1.07 million units. Overall, the tractor market has grown by a strong 12 percent in these 11 months.
Mahindra & Mahindra continued to lead the market, with a 19 percent rise in domestic sales and selling nearly 0.44 million units. Data from the Tractor and Mechanization Association (TMA) shows steady growth throughout the year. In January 2025, production was 92,648 units, with total sales at 69,770 units. By June, production rose to 1,04,329 units and sales to 1,21,613 units. September saw production exceed 1,14,500 units and sales surpass 1,54,417 units. By November, production stood at 1,02,915 units and sales at 1,02,011 units, confirming the record-breaking achievement before December.
Industry experts attribute this boom to improving agricultural and rural economic conditions. A successful Kharif season and favourable monsoon contributed to healthy crop yields and increased farm incomes. Higher crop procurement prices and increased Minimum Support Prices (MSPs) have given farmers more money to spend. The implementation of GST 2.0 on September 22, 2025, also played a key role. The reduction in GST on tractors with engines below 1,800 cc from 12 percent to 5 percent, along with lower taxes on tractor parts, made tractors more affordable. This encouraged many farmers to buy new tractors sooner than planned.
The revival of the construction sector has also boosted tractor sales, as construction activities account for about 30-35 percent of tractor demand. Increased construction work in the fourth quarter of 2025 further supported the market.
Looking ahead, the industry is anticipating potential pre-buying before April 1, 2026. This is due to the upcoming TREM-V emission norms, which could lead farmers and businesses to purchase tractors before the new, stricter standards come into effect.