September witnesses the highest monthly tractor sales in the last seven years

A reduction in GST rates, a good monsoon and strong rural demand helped tractor sales reach the highest ever monthly figure in the last seven years in September 2025.

A total of 1,54,417 tractors were sold in September, overtaking the previous high of 1,51,772 units reported in October 2024, according to Tractor and Mechanization Association data.

Tractor sales grew nearly 43 percent in September 2025 over the corresponding month last year when it stood at 1,08,030 units, doubling the 73,199 units reported in August 2025, the data showed.

Over the past seven years for which data is available on TMA’s website, sales are always highest in October. However, this year the number was highest in September and experts expect October to be even better.

The Center reduced VAT on tractors from 12 per cent to 5 per cent to boost demand and accelerate mechanization of agriculture.

Veejay Nakra, president of Farm Equipment Business, Mahindra & Mahindra Ltd, said in a statement on October 1 that the Prime Minister’s decision on GST rate cut has increased the decline in the first nine days of Navratri, which falls in the month of September this year, compared to October last year. “This was further supported by factors such as positive Kharif outlook, increase in area sown this season and above-normal monsoon,” he said.

Growth in the tractor segment was driven by positive sentiment in rural areas and supported by VAT cuts on both tractors and parts. With such positive sentiment, there is a clear upside risk to the current tractor growth estimate of 10% for FY26E, says Motilal Oswal Research.

During the month of September, M&M and Escorts reported strong growth, with domestic shipments increasing 50 percent and 49 percent year-over-year, respectively. According to management, the recent VAT cuts have increased festive off-take and the demand outlook for FY26 remains strong ahead of the upcoming Kharif season, supported by improving sentiment and favorable monsoons, Chirag Jain, deputy head of research at Emkay Global Financial Services Ltd, said in a report.

Source: Tractor and Mechanization Association

Published on October 10, 2025