Mahindra Farm Equipment Raises FY25 Growth Forecast to 6-6.8%, Targets 16% Tractor Market Growth in H2

Published - 08 Nov 2024

New Delhi: Mahindra Farm Equipment, part of Mahindra and Mahindra, has raised its growth forecast for FY2025 to 6-6.8%, up from the previous estimate of 5%. The company, which holds a 42.5% market share, saw flat growth in the first half of FY25. However, its farm machinery revenue rose 14% to INR 253 crore, showing strong domestic growth despite global challenges.

Mahindra Tractor is also planning to launch electric passenger vehicles soon but is not looking to electrify its tractors. Rajesh Jejurikar, Executive Director & CEO, mentioned that the company is instead exploring alternative fuel options like CNG, CBG, and LNG for its tractors. While multiple prototypes have been showcased, the company has no plans for commercialization in the near future.

16% Industry Growth Forecast For H2 FY25

Looking ahead, Mahindra expects the tractor industry to grow by 15-16% in the second half of FY25, driven by a good monsoon, better kharif output, and government support.

"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," further added Jejurikar.

Mahindra & Mahindra Maintains Market Share Despite Global Challenges

Mahindra & Mahindra (M&M) faced several internal challenges, including inflation in Turkey and a decline in the US market, which contributed to flat growth for FY2025. Despite this, the company maintained a strong market position with a 41.6% share in the first half of the year, slightly up from 41.2% in H1 FY2024. The tractor industry also saw steady sales, with 4.72 lakh units sold, similar to the 4.69 lakh units in FY2024.

M&M also operates internationally, being part of Mitsubishi Mahindra Agri Machinery and owning Sampo Rosenlew in Finland and Erkunt Tractors in Turkey.

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