India is boosting its tractor industry and gaining market share in Argentina and South America.

The tractor industry in India produces nearly one million units per year, accounting for about half of the global total. 90% of this production is destined for the domestic market, driven by a strong agricultural mechanization plan. The Indian government facilitates producers' access to modern machinery through loans and tax benefits.

The Mahindra brand leads the sector and is also the largest tractor manufacturer in the world, with more than 500,000 units per year. It has eight plants in India and production in countries such as China, Brazil, and the United States, consolidating a turnover of 18 billion dollars. In October 2024, it reached a record of 64,324 sales in a single month, a figure equivalent to ten years of sales in Argentina.

The appeal of the Indian market has also attracted giants such as John Deere, Massey Ferguson, New Holland, and Kubota, which have established themselves in the country. These companies seek to absorb part of the growing domestic demand and take advantage of the production scale that India offers.

Global expansion and arrival in Argentina

Indian exports grew strongly and in the first five months of 2025 reached 44,000 units. Their main destinations were the United States, Germany, and Mexico, markets that demand technology and reliability. Although price is their differentiator, the quality of the mid-power models also makes them competitive.

In South America, the Indian presence is concentrated in Brazil and Argentina, which together account for more than 45,000 tractors per year. In the Argentine case, entry occurs through agreements with local companies such as Santa Fe-based Apache (with Sonalika) and Córdoba-based Econovo (with Farmtrac). These agreements allow for the assembly and distribution of machinery adapted to the region.

In Oncativo, Córdoba, the company Econovo already displays Indian Farmtrac tractors at its plant. The alliance with Escorts Group, owner of that brand, seeks to consolidate its presence in a market where lower-priced units can offer up to a 30% advantage over competitors.

Key factors for the future of the market

The success of Indian tractors in the region will depend on their efficiency in extensive agricultural systems. In Argentina and Brazil, where production is large-scale, the durability and adaptability of the equipment will be decisive.

Another central point will be after-sales service and the distribution network, decisive factors for farmers who require reliable maintenance and warranties. Global brands already have a track record in these areas, so India will need to strengthen its local support.

The Indian approach combines power, technology, and price, and promises to intensify competition in the tractor market in South America. For Argentine producers, it represents an opportunity to access more affordable machinery, provided they have adequate support.