The company which has recorded a flat growth for H1 FY2025 has managed to retain its position as the largest tractor manufacturer of India with 42.5% market share. Farm machinery revenue increased by 14% to INR 253 crore, showcasing domestic growth despite global market pressures or international challenges.
The company which is soon going to launch passenger vehicles built on the electric origin is not exploring the same in the farm and equipment industry. “We are not looking for electrification in the tractor industry but evaluating alternative fuel businesses,” added Jejurikar.
The company has showcased multiple prototypes of different fuel technologies such as CNG, CBG, and LNG as potential alternative fuel tractors. However, the company is not looking for commercialisation anytime soon.
16% industry growth forecast for H2 FY25
The rise in tractor industry growth is due to the optimistic outlook for the second half of FY25, in which M&M expects 15-16% growth. Attributing to good monsoon, increase in growth for kharif output, and the government’s attention on rural development drove this growth, added the management.
“In Q2 FY25, we gained market share across both our Auto and Tractor businesses. SUV volumes increased by 18% YoY, maintaining leadership in revenue market share,” added Jejurikar.
Sales driven despite international challenges
M&M highlighted multiple internal challenges such as inflation in Turkey, the US market decline, and many more collaboratively led to the flat growth for FY 2025.
The company reported a 41.6% market share in the first half of the year corresponding to 41.2% in H1 FY 2024. The tractor industry volume recorded 4.72 lakh sales, which is consistent with 4.69 lakh units sold in FY2024.
The company internationally is part of Mitsubishi Mahindra Agri Machinery, and owns Sampo Rosenlew in Finland, and Turkey’s Erkunt Tractors.
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