The company had sold 26,637 units in the same month last year, it said in a statement.
Domestic tractor sales stood at 27,321 units last month as against 25,922 units during September 2013 a growth of 5.39 per cent, it added.
Exports during the month almost doubled to 1,418 units as compared to 715 units in September last year.
"We are happy to have achieved a domestic growth of 5 per cent during September 2014. The festive season has provided a boost to domestic tractor industry growth," M&M chief executive (farm equipment and two-wheeler division) Rajesh Jejurikar said.