Tractor Industry Ends FY26 On a High; March Domestic Sales Rise 29% on Festive Demand

India’s tractor industry ended FY26 on a strong note, with wholesale volumes recording robust double-digit growth in March 2026. Total sales rose 24% year-on-year to 1,12,468 units, supported by favourable agricultural conditions, a full Navratri purchasing window falling in March, and improved credit access for farmers.

According to Tractor and Mechanization Association data, domestic tractor dispatches grew 29% to 1,03,193 units during the month, while exports declined 14% year-on-year to 9,275 units. Production stood at 1,09,967 units, up 28.6% from 85,500 units a year earlier.

The country’s largest tractor maker, Mahindra & Mahindra Ltd.’s Farm Equipment Business, reported a 33% year-on-year rise in domestic dispatches to 43,404 units compared with 32,582 units a year ago. However, exports fell 31% to 1,632 units.

“A significant part of this high growth was driven by the full Navratri season falling entirely in March’26, unlike last year when it was split between March and April. We ended FY26 with highest-ever sales of 5,05,930 units, registering growth of 24%,” said Veejay Nakra, President of Farm Equipment Business.

Escorts Kubota Ltd. reported total sales of 12,119 units in March, up 6.6% year-on-year. Domestic sales accounted for the bulk of the volume, rising 7.5% to 11,582 units, while exports declined 10.4% to 537 units. 

The company noted that while harvesting activities saw some delays due to recent rainfall, the overall rabi outlook remains positive, supported by above-normal reservoir levels and improving farm sentiment. However, it flagged potential supply-side risks from geopolitical developments, including possible disruptions in fertiliser availability ahead of the kharif season.

Sonalika Tractors posted one of the strongest performances, with domestic sales rising 33% year-on-year to 16,450 units, marking its highest-ever March volumes. The company attributed this growth to robust rabi sowing, healthy reservoir levels and improved rural cash flows, further supported by the full Navratri season.

In contrast to wholesale momentum, tractor retail sales grew at a relatively moderate pace, rising 10.87% year-on-year to 82,080 units in March, according to the Federation of Automobile Dealers Associations.

FY26 Performance

For the financial year ended March 2026, both wholesale and retail tractor volumes crossed the 10-lakh mark. The domestic wholesale dispatches stood at 11,60,231 units, up 23.5% year-on-year, while retail sales reached 10,50,077 units, growing nearly 19%. This marks the first time tractor retail sales have crossed the 10-lakh milestone. Exports for the year rose around 7% to 1,05,593 units.

On the retail sales front, the competitive landscape remained heavily skewed. Mahindra & Mahindra’s tractor division, including the Swaraj brand, retained a dominant position with combined sales of 4,46,948 units, accounting for a 42.57% market share. The Mahindra brand alone held 23.81% (2,49,973 units), while Swaraj contributed 18.76% (1,96,975 units).

International Tractors Limited (Sonalika) held third position at 12.76% share (1,34,030 units), down marginally from 13.04%. TAFE Limited edged up to 11.27% (1,18,326 units) from 11.24%.

The more interesting movement was at Escorts Kubota, which climbed to 10.90% share (1,14,468 units) from 9.93% — the biggest share gain among the top five. The 30.6% volume growth suggests the global Kubota partnership is beginning to pay dividends in the domestic market, with technology transfer, product upgrades and a wider dealer footprint contributing to the acceleration.

John Deere India maintained its position with a 7.63% share (80,086 units), while Eicher Tractors saw a slight decline to 6.21% (65,215 units). CNH Industrial gained traction, increasing its share to 4.49% (47,122 units).

What drove the 10-lakh milestone

The tractor industry’s performance in FY26 was underpinned by strong agricultural fundamentals. The 2025 southwest monsoon was among the best in recent years, with rainfall slightly above the long-period average. This supported strong kharif output, improved reservoir levels and strengthened rural cash flows, particularly from the second half of the year.

The rabi season also remained robust, with higher sowing across key crops such as wheat, mustard and pulses. Government support through MSP hikes, direct benefit transfers and improved farm economics further boosted farmer sentiment and purchasing power.

The rural-urban dynamic in tractor demand remains distinct. Rural markets accounted for 81% of total tractor retail in FY26, largely unchanged from 81.5% in FY25. Urban demand, which includes construction and haulage applications, grew faster at 22.37% compared with rural growth of 18.17%, indicating increasing non-agricultural usage of tractors.