Tractor Industry Opens FY27 on Strong Note, Domestic Sales Up 27% in April

India’s tractor industry opened FY27 on a strong note, with total wholesale volumes rising 27.1% year-on-year to 1,14,725 units in April 2026, supported by steady farm demand, healthy rural cash flows, and the carryover impact of affordability gains from GST rationalisation.

According to data from the Tractor and Mechanization Association, domestic tractor sales rose 26.8% year-on-year to 1,05,021 units in April, compared with 82,839 units in the year ago period. Exports outpaced domestic growth, rising 30.4% to 9,704 units from 7,441 units. Overall production increased 18.1% year-on-year to 1,10,261 units. 

On a sequential basis, however, industry momentum was more measured. Total sales grew 2% from March’s 1,12,468 units, while domestic sales rose 1.8% and exports increased 4.6%. Production was almost flat sequentially, rising 0.3% from March. 

The country’s largest tractor maker, Mahindra & Mahindra Ltd.’s Farm Equipment Business (FEB), reported a 20% year-on-year increase in domestic tractor sales, reaching 46,404 units compared with 38,516 units a year earlier. Its exports rose 30% to 2,007 units from 1,538 units in April 2025.

Veejay Nakra, President of Farm Equipment Business, Mahindra & Mahindra Ltd, said, “This strong performance was delivered despite the absence of Chaitra Navratri in April this year, unlike last year when April included seven Navratri days.”

Escorts Kubota Ltd. sold 10,857 tractors in April 2026, marking a 24.4% increase from 8,729 units in the same month last year. Domestic sales accounted for the bulk of the volume, rising 27.6% to 10,398 units, while exports declined by 21% to 459 units from 581 units.

Sonalika Tractors recorded sales of 16,223 units in April 2026, up 36% on year. The company attributed the growth to continued demand for mechanisation, supported by factors such as higher foodgrain production and GST-led cost adjustments in the agricultural sector. 

The wholesale momentum was also reflected in retail sales in April. Tractor retails rose 23.22% year-on-year to 75,109 units in April, making tractors the fastest-growing vehicle category in the month, according to the Federation of Automobile Dealers Associations (FADA). FADA said tractor demand remained anchored in healthy farm economics and Bharat momentum. 

FY27 Outlook

Despite the strong start, tractor makers expect growth to moderate in FY27 because of the high base created in FY26 and the cyclical nature of rural demand.

Mahindra & Mahindra expects tractor industry growth to moderate to mid-single digits in FY27, after a strong FY26 base. Rajesh Jejurikar, Executive Director and CEO for Auto and Farm Sector at M&M, said the tractor business remains cyclical, but the company continues to manage margins within a defined band.

M&M has also taken corrective steps in its international farm equipment business, including exiting select markets where profitability was under pressure. “With these changes, we see a path to profitability,” Jejurikar said.

The company, however, said the outlook remains subject to geopolitical developments, which could influence demand, supply chains and input costs.

Escorts Kubota has guided for a broadly flat tractor industry in FY27, with movement of plus or minus 2-3%. The company expects the first half to see some growth because of last year’s weak base, but the second half could be tougher. The comparison base of 11.6 lakh units is the highest the industry has ever produced, while the GST tailwind has now normalised into baseline pricing.

Sonalika has also indicated that geopolitical conditions, supply-chain impact and rising input costs could moderate farmer affordability and market sentiment in the near term. Evolving weather patterns will remain a key factor to watch for future demand trends.

For now, April numbers show that rural demand remains resilient. But after a strong FY26 and a robust start to FY27, the industry’s growth trajectory will depend on monsoon progress, crop realisations, input costs and whether the post-GST demand lift can sustain beyond the first half.