Mahindra raises Tractor Industry Growth Outlook to 9% by FY2030

Mahindra & Mahindra has shared an upbeat outlook for the Indian tractor market. The company now expects the sector to grow at 9% annually until FY2030, compared to Mahindra & Mahindra's earlier forecast of 7%. This revised projection was revealed during an investor call.

Why the Indian Tractor Market Growth Outlook Improved?

There are a few major reasons behind this confidence:

• Better profitability in farming: Cash and horticulture crops have seen a 5.6% rise in profitability.
• Drop in tractor cost trends: The Tractor Price Index has fallen by 7.1%, making machines comparatively more affordable.
• Government support: Changes in the Goods and Services Tax (GST) are encouraging farmers to shift toward bigger and more advanced tractors.

Together, these factors are boosting demand-especially for higher horsepower tractors.

Expected Tractor Demand in the Coming Years

India currently has millions of tractors in use, but demand is still growing because many farms are not fully mechanised.

• The installed tractor base is expected to reach 12.2 million units by FY2030, up from the earlier estimate of 11 million.
• But according to Mahindra, if India aims for better mechanisation standards, the real requirement could be:
  • 17 million tractors at 4 HP per hectare, or
  • Up to 24 million tractors at 6 HP per hectare.

This shows there’s still a huge opportunity for growth.

Shift Toward Higher HP Tractors

One major trend in the industry is the rising preference for more powerful machines.

• Tractors in the 40–50 HP segment now make up 64% of sales in FY2025, compared to 49% five years ago.

Farmers are choosing performance over entry-level models as agriculture becomes more commercial and technology-driven.

Mahindra Tractors Rising Performance

Mahindra tractor has seen strong growth in the last five years.

• Global tractor volumes have increased 1.4x between FY2020 and FY2025.
• In FY2025, the company sold 4.33 lakh (433,000) tractors globally.
• Revenue from tractors reached ₹35,375 crore, with a profit after tax of ₹3,792 crore.

Mahindra’s strategy is built on three pillars:

• Faster industry growth
• Higher market penetration
• A shift to more powerful tractors

Mahindra Tractor Global Expansion

Mahindra is also strengthening its global footprint with operations in:

• U.S.
• Brazil
• Turkey
• Japan

Some key updates include:

In North America, Mahindra holds a 10.4% share in sub-20 HP tractors and has launched new compact models like the 1100 Sub Compact and 2100 Compact series.

• In Brazil, Mahindra holds:
  • 8% share in sub-120 HP tractors
  • 20% share in the sub-50 HP category
• Upcoming global launches include:
  • New high-horsepower models
  • NOVO series
  • OJA small and utility tractors

The company has also announced a new manufacturing plant to support its increasing international operations.

Conclusion

With strong market trends, government support, and rising adoption of advanced tractors, India’s tractor industry is gearing up for rapid growth. Mahindra & Mahindra is positioning itself at the centre of this transformation, both in India and globally.

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