Mahindra Farm Equipment Projects 6-6.8% FY25 Growth, Aims for 16% Tractor Market Surge in H2

Posted -08 November 2024

Mahindra Farm Equipment Estimates 6–6.8% Growth in FY25 and Targets a 16% Tractor Market Increase in H2

New Delhi: Mahindra Farm Equipment, the subsidiary of Mahindra and Mahindra, has increased its growth outlook for FY2025 to 6-6.8% from 5% earlier. The company has a market share of 42.5% and has seen a flat growth in the first half of FY25. Nevertheless, its farm machinery revenue surged 14% to INR 253 crore, displaying some good domestic growth against global challenges.

Mahindra also plans to introduce electric passenger vehicles soon, though it doesn't plan to do the same with its tractors. Executive Director & CEO Rajesh Jejurikar said that the company is working on tractors using alternative fuels such as CNG, CBG, and LNG instead. Though several prototypes have already been demonstrated, the company does not see commercialising them anytime soon.

16% Industry Growth Projections For H2 FY25

In the second half of FY25, Mahindra anticipates that favourable monsoon conditions, increased kharif output, and government assistance will accelerate the tractor industry's growth by 15–16%.

Rajesh Jejurikar also added, "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,".
Despite global challenges, Mahindra & Mahindra continues to hold its market share

Mahindra & Mahindra (M&M) has witnessed some internal issues like inflation in Turkey and a downward trend in the US market, which have resulted in flat growth for FY2025. However, it has remained predominant in the market with a 41.6% share in H1, albeit marginally higher than H1 FY2024 was at 41.2%. The sales of tractors also continued to rise, at 4.72 lakh units, compared with FY2024, which stood at 4.69 lakh units.

As a subsidiary of Mitsubishi Mahindra Agri Machinery, M&M also has operations abroad. It owns Erkunt Tractors in Turkey and Sampo Rosenlew in Finland.

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