Positive October for Indian tractor industry, festive season and good crop yields boost sales

In October 2024, Indian tractor companies Mahindra Tractors, Escorts Kubota, and VST reported strong domestic sales, fueled by favorable weather, good crop yields, and festival demand. Demand is expected to remain strong in the upcoming months.

In October 2024, Indian tractor manufacturers Mahindra Tractors, Escorts Kubota, and VST reported strong domestic sales driven by favourable conditions and festival season demand. However, exports from Escorts Kubota declined by 52%. This data was released by these major Indian tractor manufacturers, highlighting their performance last month.

Mahindra Tractors

According to the data released by Mahindra Tractors, the company experienced a substantial 30 percent increase in total sales (domestic + export) compared to October 2023. The company sold 64,326 tractors domestically in October, up from 49,336 units sold in the same month last year. Exports rose slightly, with 1,127 units shipped compared to 1,124 last October.

Hemant Sikka, President of Agricultural Implements at Mahindra & Mahindra Limited, attributed this growth to factors such as a good monsoon, strong Kharif crop yields, high water levels in reservoirs for Rabi crops, and a higher Minimum Support Price (MSP) announced by the government. The festive season also created a “positive atmosphere,” boosting demand.

Escorts Kubota

Escorts Kubota showed a total growth of 19.8 percent in October 2024, selling 18,110 tractors compared to 15,113 units last October. Domestic sales rose by 22.6 percent, with 17,839 units sold compared to 14,550 last year. However, the company faced a decline in exports, shipping only 271 units this October, a 51.9 percent drop from the 563 units exported in October 2023.

VST Limited

VST Limited recorded impressive growth, with tractor sales up by 135 percent. The company sold 680 tractors in October 2024, up from 289 units last year. Including power tillers, VST’s total sales rose by 63 percent, with 2,463 units sold compared to 1,509 units in October 2023.

The overall positive performance in the tractor industry is attributed to good monsoon conditions, favorable agricultural yields, government support for crop prices, and strong demand driven by the festive season. The industry expects this demand to continue in the coming months.