Mahindra Lifts Tractor Growth Forecast, Predicts 12.2 Million Units by 2030

Key Highlights:

• India tractor market to grow 9% annually till FY2030.

• Installed base forecast revised to 12.2 million units.

• High-HP tractors now 64% of sales.

• Global share rising in the U.S. and Brazil.

• New high-HP, OJA, and NOVO models launching globally.

Mahindra & Mahindra Ltd has raised its growth outlook for the Indian tractor industry, projecting 9% annual growth till FY2030, up from its earlier estimate of 7%. This updated forecast was shared during the company’s latest investor call, reflecting a stronger-than-expected rise in rural demand and agricultural profitability.

India’s Tractor Demand Set to Surge

Mahindra now expects India’s total installed tractor base to reach 12.2 million units by FY2030, compared to the previous projection of 11 million. According to the company, the real requirement could be even higher.

• At 4 HP per hectare, India may need 17 million tractors.

• At 6 HP per hectare, the requirement jumps to 24 million units.

This gap highlights a huge mechanization opportunity for the sector.

What Is Driving the Strong Outlook?

The company attributed the positive outlook to multiple factors:

• Crop and horticulture profitability has grown 5.6%.

• The Tractor Price Index has dropped by 7.1%, making machines more affordable.

• GST changes are encouraging the use of bigger and more advanced tractors.

A major shift is already underway. The 40–50 HP segment now accounts for 64% of tractor sales in FY2025, up from 49% in FY2020. This indicates that farmers are increasingly opting for higher-horsepower tractors to achieve better productivity.

Mahindra’s Performance and Market Strategy

Between FY2020 and FY2025, Mahindra boosted its global tractor volumes by 1.4 times, touching 4.33 lakh units. Tractor business revenue rose to ₹35,375 crore, with ₹3,792 crore profit after tax.

Mahindra’s growth strategy is built on three pillars:

1. Faster industry expansion

2. Deeper tractor penetration in rural India

3. A strong shift toward high-HP tractors

Global Expansion Accelerates

Mahindra is rapidly strengthening its international presence with manufacturing and distribution bases in the U.S., Brazil, Turkey, and Japan.

North America

• Market share in sub-20 HP tractors: 10.4% (March quarter)

• New launches: 1100 Sub Compact, 2100 Compact

• Upcoming: OJA Small & Large Utility models, high-HP platforms

• Market size (sub-110 HP segment): 200,000 units

Brazil

• Market share: 8% in sub-120 HP, 20% in sub-50 HP

• New launches planned: High-HP tractors, NOVO series, OJA series

• New manufacturing facility announced to support global expansion

Also Read: Mahindra Unveils Bold Global Growth Plan: Bigger Tractors, New Tech & International Push

CMV360 Says

Mahindra’s revised 9% growth forecast signals renewed confidence in India’s agricultural machinery market. Rising farm profitability, favourable tax policies, and the fast move toward high-horsepower tractors are creating strong momentum. Combined with Mahindra’s aggressive global expansion, upcoming product launches, and plans for new manufacturing capacity, the company is positioned to play a major role in shaping the future of farm mechanization in India and worldwide.