Domestic Tractor Shipments Grow 34% in February, Exports up 8% 

India’s tractor industry reported a strong double-digit growth in February 2026, with total sales rising 31% year-on-year to 88,545 units, supported by strong agricultural fundamentals, government policy support, improved credit access for farmers, and increased rural infrastructure spending.

According to data from the Tractor and Mechanization Association (TMA), domestic tractor sales surged 34% to 78,901 units compared with 58,797 units in February last year. Export volumes also grew, albeit at a slower pace, rising 8% year-on-year to 9,644 units from 8,954 units.

On a month-on-month basis, however, overall industry volumes declined 9% from January’s 97,724 units, reflecting a moderation in demand after festive-season momentum.

The country’s largest tractor maker, Mahindra & Mahindra Ltd.’s Farm Equipment Business (FEB), reported a 35% year-on-year increase in domestic tractor sales, reaching 32,153 units compared with 23,880 units a year earlier. Total tractor sales, including exports, rose 34% to 34,133 units from 25,527 units in February 2025.

Veejay Nakra, President of the Farm Equipment Business at Mahindra & Mahindra, attributed the growth to strong agricultural fundamentals. He said robust expansion in the rabi sowing area, healthy reservoir levels and a favourable kharif harvest have strengthened rural cash flows. The positive rural sentiment and the Navratri festive period during the month are expected to further support tractor demand, he added.

Escorts Kubota Ltd. (EKL) sold 10,339 tractors in February 2026, marking a 20.4% increase from 8,590 units in the same month last year. Domestic sales accounted for the bulk of the volume, rising 22.1% to 9,725 units, while exports declined marginally to 614 units from 622 units, a drop of 1.3%.

Sonalika Tractors recorded sales of 12,890 units in February 2026, the highest ever for the month. Raman Mittal, Joint Managing Director of International Tractors Ltd., said the performance reflected the company’s focus on developing products suited to diverse Indian farming conditions.

Sonalika’s February sales record came against a backdrop of favourable conditions in the agricultural sector. India's rural economy has benefited from strong government policy support, including increased rural infrastructure spending, improved credit accessibility for farmers, and a push toward digital mechanisation initiatives. These factors have contributed to improved farmer sentiment and a higher propensity to invest in farm equipment, according to industry observers.

Meanwhile, VST Tillers Tractors Ltd. posted the fastest growth among peers, with tractor sales rising 53.2% to 472 units from 308 units in February last year.

India’s tractor market remains highly sensitive to seasonal and macroeconomic factors. Monsoon performance, crop price realisations, rabi and kharif sowing trends and government procurement policies play a key role in determining farmer income and equipment purchase decisions. A normal monsoon in 2025 and expansion in rabi sowing area have provided supportive conditions for tractor demand heading into the current financial year.