Kubota Reports a 2.2% Increase in Tractor Sales during June 2025
Escorts Kubota Limited, a leading tractor manufacturer, has reported a steady growth in tractor sales for the year 2025, driven by several key factors.
The growth in tractor sales is primarily attributed to stable rural demand, supported by a timely and above-normal monsoon. The arrival of the southwest monsoon on time and favourable monsoon forecasts have boosted agricultural activities, particularly the kharif sowing season, which directly fuels demand for tractors.
Improved farmer sentiment is another significant factor. This improvement is attributed to increased kharif sowing activity and the government’s announcement of higher Minimum Support Prices (MSP) for kharif crops. These measures have raised farmers’ income expectations, encouraging investment in mechanisation such as tractors.
Positive liquidity conditions in rural markets have also played a crucial role. Healthy reservoir levels and anticipated record kharif output have generated better cash flows in rural areas, thereby supporting tractor purchases.
Strong export growth is another key contributor to the company’s overall sales growth. Exports surged by 114% in June 2025 compared to the previous year.
Escorts Kubota is focusing on strategic product innovation and expansion plans. The company is planning to launch new tractor models, leveraging Kubota’s advanced technology combined with Escorts’ cost competitiveness. This product pipeline is expected to enhance their market position and drive further growth domestically and internationally.
In the domestic market, Escorts Kubota sold 10,997 tractors in June 2025, compared to 11,011 units in June 2024, marking a negligible decrease of 0.1%. In the export market, the company sold 501 tractors in June 2025, a significant increase of 114.1% compared to 234 units sold in June 2024.
In the fiscal year 2025, the company sold 30,581 tractors in the domestic market, a 0.7% increase compared to 30,370 units in FY24. In the export market, 1,733 tractors were sold in FY25, a 80.3% increase compared to 961 units in FY24.
The company anticipates this momentum to continue throughout the year. The National Company Law Tribunal, Chandigarh Bench approved the Scheme of Amalgamation of Escorts Kubota India Private Limited and Kubota Agricultural Machinery India Private Limited with Escorts Kubota Limited on August 29, 2024. This amalgamation is expected to further strengthen the company's position in the tractor industry.
[1] Business Standard, Escorts Kubota registers 2.2% growth in tractor sales in June 2025, 1 July 2025. [2] Financial Express, Factors driving Escorts Kubota's growth in tractor sales for 2025, 5 July 2025. [3] Economic Times, Escorts Kubota's strategic product innovation to drive growth, 10 July 2025. [4] Business Today, Escorts Kubota's export sales surge by 114% in June 2025, 15 July 2025.
Despite the leading role of Escorts Kubota Limited in tractor manufacturing, their business is not confined to agricultural machinery.
The growing demand for tractors has been fueled by various factors, such as increased kharif sowing activity, improved farmer sentiment due to higher Minimum Support Prices (MSP) for kharif crops, positive liquidity conditions in rural markets, and robust export growth.
