Tractor Sales Cross 1.21 Lakh Units in June 2025 After 8-Month Gap: Timely Monsoon and Strong Rabi Crop Drive Demand

Key highlights

• June tractor sales reached 1,21,613 units.

• 10% growth compared to June 2024.

• 22% increase over May 2025 sales.

• Boosted by monsoon and strong rabi crop.

• Demand recovery began from March 2025.

For the first time in eight months, monthly tractor sales in India have crossed the 1 lakh mark, bringing positive momentum to the agricultural machinery sector. According to data shared by the Tractor and Mechanisation Association (TMA), June 2025 recorded total sales of 1,21,613 tractor units, registering a 10% year-on-year growth compared to 1,10,348 units sold in June 2024.

This marks a 22% increase over May 2025, indicating a strong month-on-month demand recovery in rural markets.

Sales Rebound After a Prolonged Decline

The last time tractor sales had crossed one lakh units was in October 2024. Following that, the industry witnessed four straight months of decline. The recovery only began from March 2025, and June’s performance confirms that the market is back on track.

Reasons Behind the Surge in Sales

The timely arrival of the monsoon, a successful rabi crop harvest, and improving kharif crop conditions have significantly boosted farmer confidence, leading to increased tractor purchases.

A report from Anand Rathi Research highlighted that the early onset of rains and overall healthy agricultural activity were major contributors to the sales boost. The report further added that rural demand is being positively influenced by several factors, including:

• Better monsoon coverage

• Strong Rabi output

• Improved cash flow in rural areas

• Lower interest rates on loans

• Higher disposable income due to tax relief measures

Sector Outlook Remains Positive

Experts believe that if the current monsoon pattern continues and kharif sowing remains strong, the tractor industry could witness sustained growth in the upcoming months. The mix of better liquidity, government support, and favourable crop production has built strong buying sentiment in rural India.

Also Read: India Sees 8.68% Growth in Tractor Sales as Early Rains Spark Kharif Sowing Surge

CMV360 Says

After eight months of sluggish performance, the Indian tractor market has made a strong comeback in June 2025, crossing 1.21 lakh units in monthly sales. With favourable weather conditions and economic support, the outlook for the coming months remains optimistic for manufacturers and farmers alike.