Tractor sales in 2024 saw a marginal decline of 1.5%, ending the year with 901,668 units sold, compared to 915,474 units in 2023. The dip was primarily attributed to weaker demand during the first half of the year. However, the second half painted a more optimistic picture, driven by favorable weather conditions, robust rural demand, and healthy reservoir levels that supported increased rabi crop acreage.
According to the Tractor and Mechanisation Association, the industry’s performance in 2024 began on a shaky note due to the lingering impact of El Niño conditions, which hampered agricultural activities early in the year. Despite these challenges, the sector rebounded strongly in the latter half, thanks to improving market conditions and robust monsoons that bolstered agricultural output.
Hemant Sikka: “Rabi Season Outlook Remains Positive”
Hemant Sikka, president of the farm equipment sector at Mahindra & Mahindra, shed light on the fluctuations in tractor sales throughout the year. Speaking to Business Standard, Sikka noted that tractor sales grew by 5% year-on-year between April and December 2024. “Healthy reservoir levels have supported rabi crop acreage. Due to a favorable outlook for the rabi season, tractor sales are expected to grow in Q4, and we expect the industry to end the year with a growth outlook of 6–7%,” Sikka stated. The timely arrival of pre-monsoon showers along India’s west coast also helped kickstart the kharif planting season, setting a positive tone for the latter part of the year.
A significant boost to tractor volumes was observed during the festive month of October 2024, when sales surged by 22% to 144,675 units, compared to 118,232 units in October 2023. Despite a slight dip in November (sales declined by 1.34%), volumes picked up again in December, registering a growth of 13.99% with 50,993 units sold. Industry experts have attributed this recovery to strong monsoons and higher minimum support prices (MSPs), which improved rural purchasing power. These factors, combined with increasing kharif acreage, drove positive sentiments across the agricultural sector.
Adding to the positive developments, Raman Mittal, joint managing director of International Tractors Limited (makers of the Sonalika brand), highlighted the significant role of water reservoir levels in driving demand. “The year 2024 has been a dynamic one for the tractor industry. Water reservoir levels surpassed the 10-year average long-period average (LPA) in the southern (38%), western (31%), and central (17%) regions,” Mittal said. These favorable conditions contributed to kharif crop acreage reaching a five-year high of 110.85 million hectares, further boosting sentiments during the festive season. Mittal expressed optimism for the coming quarters, saying, “We expect the industry to remain positive in Q4 owing to sustained demand and favorable market conditions.”
While El Niño conditions at the start of the year presented challenges, the agricultural sector’s resilience helped offset its adverse effects. The southwest monsoon, which arrived later in the year, played a crucial role in replenishing water reservoirs and supporting crop production. These factors set the stage for a recovery in rural demand, directly impacting tractor sales.
Tractor Sales: Monthly Breakdown for 2024
A month-by-month analysis of domestic tractor sales in 2024 highlights the sector’s fluctuating fortunes:
| Month | 2024 Sales | 2023 Sales | % Change |
|---|---|---|---|
| January | 55,589 | 65,635 | -15.31% |
| February | 43,277 | 62,367 | -30.61% |
| March | 63,755 | 82,856 | -23.05% |
| April | 76,945 | 79,288 | -2.96% |
| May | 82,948 | 82,907 | 0.05% |
| June | 101,981 | 98,422 | 3.62% |
| July | 59,529 | 58,583 | 1.61% |
| August | 50,134 | 53,249 | -5.85% |
| September | 100,542 | 96,934 | 3.72% |
| October | 144,675 | 118,232 | 22.37% |
| November | 71,300 | 72,266 | -1.34% |
| December | 50,993 | 44,735 | 13.99% |
The data clearly illustrates the challenging start to the year, with significant declines in the first quarter. However, the strong recovery in the latter half helped minimize the overall decline to just 1.5%.
Looking ahead, industry leaders remain optimistic about the prospects for 2025. Favorable weather conditions, strong rabi crop production, and government initiatives aimed at supporting the agricultural sector are expected to fuel further growth in tractor sales. Additionally, increasing mechanization in farming and higher rural incomes will likely contribute to sustained demand. Hemant Sikka predicts a 6–7% growth for the tractor industry in the upcoming quarters, while Raman Mittal foresees continued positive momentum driven by stable market conditions and improved rural purchasing power.
The tractor industry in 2024 experienced a rollercoaster year, starting with challenges posed by El Niño conditions but recovering strongly in the second half due to favorable weather, higher MSPs, and robust rural demand. Although overall sales dipped by 1.5%, the sector’s resilience and adaptability have set the stage for a promising 2025. As the year unfolds, industry stakeholders remain optimistic about sustained growth, with favorable rabi crop acreage and government support providing a strong foundation for the agricultural sector.
