Sonalika Tractor Emerges as the Biggest Gainer in India’s Tractor Market in FY26

Sonalika (International Tractors) has emerged as the undisputed biggest gainer in the first four months of FY25, accelerating its market share gain seen in the previous years.

According to the latest data from the Federation of Automobile Dealers Associations (FADA), Sonalika has significantly outpaced competitors in the early months of FY2026, cementing its position as the country's third-largest tractor manufacturer with a trajectory that suggests further consolidation ahead.

This comes as the tractor market, which had faced challenges in FY2025 with a marginal decline of 1.04%, has rebounded strongly in the new financial year. Year-to-date figures for April-July 2025 show the segment growing at a healthy 7.67%, with total sales reaching 2,98,978 units. 

Against this backdrop of recovery, Sonalika has delivered an extraordinary performance that has set it apart from all competitors. In FY2025, the company held a 12.80% market share with sales of 1,14,207 units.

Fast forward to July 2025, and Sonalika's market share has climbed to 14.13%, representing the most significant gain among all tractor manufacturers during this period.

Sonalika's growth trajectory in FY2026 has been both consistent and impressive. In April 2025, the company sold 7,782 tractors, capturing 12.78% of the market. By June, this had risen to 10,136 units and a 13.13% share. 

The momentum continued building in July, with sales reaching 12,536 units and market share expanding further to 14.13%. This represents a remarkable 12.4% growth in July 2025 compared to the same month in the previous year, significantly outpacing the industry's overall growth rate.

What makes Sonalika's performance particularly noteworthy is how it has gained ground relative to its competitors. While market leader Mahindra & Mahindra (including its Swaraj division) have maintained their combined dominance with approximately 42% market share, Sonalika has successfully widened its lead over the third-placed OEM TAFE Ltd.

The gap between Sonalika and TAFE has expanded from a mere 0.7 percentage points in FY2024 to a substantial 4.1 percentage points by July 2025.  

Several factors appear to be driving Sonalika's exceptional performance. The company has strategically capitalized on the stronger growth in rural markets, where tractor sales have been outpacing urban demand.

FADA data indicates that rural tractor sales grew by 8.70% in FY2025 compared to just 0.28% in urban areas, and this rural momentum has continued into FY2026. Sonalika's deep penetration in rural India, combined with a product portfolio tailored to diverse agricultural needs, has positioned it perfectly to benefit from the positive agricultural sentiment.  

Second, Sonalika has maintained a strong presence in key tractor segments, particularly in the 35–75 HP range, which is widely used by medium and progressive farmers.

The company has also focused on improving after-sales service and dealer availability in rural and semi-urban markets — factors that influence purchase decisions.

Third, financing conditions, while still tight, have seen some relief. A 25 basis point cut in the repo rate in early June has begun to ease borrowing costs, making tractor purchases more accessible for farmers.

Additionally, the broader rural economy has benefited from a 3% increase in the Minimum Support Price (MSP) for kharif crops, announced in May 2025, which has helped improve cash flows for farming households.

Sonalika, a flagship brand of International Tractors Limited (ITL), is a leading Indian tractor manufacturer founded in 1969 and headquartered in Hoshiarpur, Punjab. It is India’s biggest tractor exporter by volume. 

Against its domestic market share of around 14%, it holds an export market share of around 34%—meaning roughly one in every three tractors exported from India is a Sonalika.