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Scania Expands Indian Operations With New Bengaluru Office

Dev Vadchhedia — Thu, 16 Apr 2026 17:36:19

Scania Commercial Vehicles India inaugurated its new corporate office in Bengaluru on April 16, 2026. The opening ceremony was attended by Jan Thesleff, the Ambassador of Sweden to India, alongside senior Scania leadership, customers, dealer partners, finance partners, and representatives from Business Sweden.

The new facility in Bengaluru is intended to serve as a hub for key business functions, aimed at facilitating closer coordination across teams and improving engagement with stakeholders. The location will also focus on attracting a skilled professional talent pool for the company's operations. Concurrently, Scania confirmed that its Regional Product Centre located in Narasapura continues to be fully operational, providing end-to-end manufacturing and tailored solutions.

In conjunction with the new office opening, Scania announced a White label financing program established in partnership with Axis Bank. The initiative is designed to offer accessible and competitive financing options for customers purchasing Scania trucks in the Indian market. According to Munish Sharda, Executive Director of Axis Bank, the collaboration combines product capability with structured financing to support fleet operators.

Martin Stahlberg, Senior Vice President for Asia and Oceania at Scania CV AB, noted that India remains a central market for the company's long-term global growth strategy. Silvio Munhoz, Managing Director of Scania Commercial Vehicles India, stated the new office and the Axis Bank partnership will enable the company to operate with greater proximity to its customer base and provide structured solutions for fleet expansion.

How Tata Motors’ Lucknow Plant Evolved from the 407 Era to a Million-Vehicle Milestone

Shahkar Abidi — Thu, 16 Apr 2026 14:16:16

On April 25, 2026, the industrial landscape of Uttar Pradesh marked an important milestone as Tata Motors celebrated the rollout of its 10th lakh commercial vehicle from its Lucknow facility. This achievement is the culmination of a three-and-a-half-decade journey that began in the mid-1980s. At that time, the state government provided 6,000 acres on Deva Road, hoping a modern private-sector entrant could repair an industrial reputation then marred by labour unrest at state-owned firms. The plant’s first truck, a variant of the LP-1210, eventually debuted in late 1992, following a 1986 groundbreaking ceremony.

Strategic Entry
The decision to establish this greenfield site was deeply tied to the 1986 launch of the Tata 407. As a purely homegrown light commercial vehicle, the 407 did more than just capture the domestic market from international rivals; it effectively rescued the company from a financial crisis. The resulting surge in demand necessitated a specialised production hub beyond the traditional centres in Jamshedpur and Pune, positioning Lucknow as a critical pillar in Tata’s national strategy. Today, that strategy has evolved from simple assembly to high-tech customisation through an on-site Engineering Research Centre that validates new designs for specific customer needs.

Flexibility is Key
The facility's modern identity is defined by what leadership calls "multi-fuel" agility. Vishal Badshah, Vice President and Head of Operations at Tata Motors, notes that the plant is capable of producing diesel, CNG, electric, and hydrogen fuel cell vehicles on the same assembly lines. Badshah describes this integrated approach as one of the industry's most innovative practices, bolstered by a Digital Command Control Centre that monitors critical manufacturing processes in real time. This technological leap allows the plant to handle everything from 4-tonne light trucks to massive 55-tonne heavy-duty haulers without traditional production bottlenecks.

Expanding the Product Portfolio
A significant portion of the plant’s legacy involves its role in the bus segment, which currently accounts for roughly 25% of total production. This capability was sharpened by a 2006 partnership with the Brazilian firm Marcopolo S.A., which focused on "fully built" buses—vehicles delivered with the body and interior complete, rather than just the frame. Although Marcopolo exited the venture after 15 years to refresh its global strategy, Tata Motors successfully integrated the expertise, continuing to manufacture the Starbus and Ultra brands independently.

Way Ahead
Looking ahead, the Lucknow facility is positioned for significant growth without the immediate requirement for physical expansion. During the last fiscal year, the plant utilised approximately 60% of its one-lakh-unit annual capacity, producing 56,000 vehicles. This spare capacity provides a strategic cushion as the market shifts towards greener technologies like hydrogen and electric power.

Ashok Leyland Launches ‘Twin-Fuel’ Variants Of Its Dost LCV

Dev Vadchhedia — Thu, 16 Apr 2026 12:38:42

Ashok Leyland has launched dual-fuel variants of its DOST and DOST+ XL light commercial vehicles. The new models incorporate a system that allows operators to switch between Compressed Natural Gas (CNG) and petrol.

The TWIN FUEL DOST model is priced from ₹8.20 lakh, ex-showroom. It provides a payload capacity of 1218 kg and a total driving range of 400 km. The vehicle is fitted with a 120-litre CNG tank and a supplementary 5-litre petrol tank for emergency use.

The higher-capacity TWIN FUEL DOST+ XL variant is available at a starting ex-showroom price of ₹8.75 lakh. This model features a 1410 kg payload capacity and an extended range of 500 km. It utilizes a 148-litre CNG tank alongside the standard 5-litre petrol reserve.

The addition of the petrol tank is intended to mitigate range anxiety for operators by providing a backup fuel source in areas lacking CNG infrastructure. Ashok Leyland is positioning the new vehicles for urban and semi-urban logistics operators, last-mile delivery services, and small enterprise businesses.

Viplav Shah, Head of LCV Business at Ashok Leyland said, "The vehicles are designed to provide operational flexibility by running on CNG for cost efficiency and petrol for extended range and eliminating availability anxiety, while delivering lower emissions that reduce the carbon footprint and support India’s sustainability goals."

The dual-fuel models were formally introduced by Amandeep Singh, President of LCV, IO, Defence and Power Solutions, Ashok Leyland and Shah.

Tata Motors Rolls Out 10 Lakh Commercial Vehicles from Lucknow Plant

Shruti Shiraguppi — Wed, 15 Apr 2026 13:17:20

Tata Motors Ltd. on Tuesday rolled out the 10th lakh commercial vehicle from its Lucknow manufacturing facility, marking 35 years of production in Uttar Pradesh. The milestone vehicle, a zero-emission electric bus, was flagged off by Chief Minister Yogi Adityanath and Tata Sons Chairman N. Chandrasekaran at a ceremony in Lucknow on April 15, 2026. The event was attended by Deputy Chief Minister Brajesh Pathak, Tata Motors Managing Director and CEO Girish Wagh, and senior state and company officials.

The Lucknow plant, established in 1992, now produces trucks and buses across multiple powertrains — including battery-electric and fuel cell electric vehicles — and has an annual production capacity of over one lakh vehicles. Spread across approximately 600 acres, it supports over 8,000 livelihoods and exports to international markets.

Yogi Adityanath said, "The rollout of 10 lakh trucks and buses from Tata Motors' Lucknow facility is a moment of pride for the entire state. It is a recognition of the state's capabilities and immense potential, as well as of its talented people. Our vision is to transform Uttar Pradesh into a one-trillion-dollar economy, with industry and entrepreneurs playing a pivotal role in this journey. The state offers a conducive ecosystem for scalable businesses, supported by a vast consumer market, a young, skilled workforce, and seamless connectivity. Tata Motors' success in Uttar Pradesh reflects the strength of this ecosystem and reinforces our commitment to fostering responsible industrial growth, creating jobs, building skills and advancing sustainable socio-economic development."

N. Chandrasekaran said, "The production of Tata Motors' 10th lakh commercial vehicle from its Lucknow facility reflects the strength of our longstanding partnership with Uttar Pradesh. Over more than three decades, this collaboration has demonstrated how industry, government and communities can come together to drive industrial excellence, create livelihoods and build capabilities at scale. We are deeply grateful to the Hon'ble Chief Minister and the entire state for their continued support and for fostering a progressive, growth-oriented approach. As Uttar Pradesh accelerates its journey towards sustainable and inclusive growth, we remain firmly committed to contributing to its progress and to shaping a future-ready mobility ecosystem."

The plant operates on 100% renewable electricity and holds a CII-certified water-positive status. It runs skilling programmes — Kaushalya, Lakshya, and Saksham — through a Dual System of Training and apprenticeship model, training youth from across the state for manufacturing roles. The facility's workforce includes women and persons with disabilities.

Tata Motors said the Lucknow plant will continue to manufacture vehicles aligned with its net-zero target of 2045, alongside Uttar Pradesh's net-zero 2070 vision.

Green Drive Mobility and Tata Motors Expand EV Cargo Collaboration, Targeting 1,000 EVs by 2028

Shruti Shiraguppi — Tue, 14 Apr 2026 13:44:42

Green Drive Mobility, an electric vehicle fleet operator, and Tata Motors on Tuesday announced an expansion of their existing collaboration to deploy electric commercial vehicles across logistics operations in India. Under the arrangement, Green Drive Mobility uses Tata Motors electric cargo vehicles for first-mile, mid-mile, and last-mile operations serving enterprise customers across multiple sectors. The company has set an internal target of approximately 1,000 electric cargo vehicles by 2028, subject to market demand, customer requirements, and product availability.

Hari Krishna, Founder and CEO, Green Drive Mobility, said, "Our continued collaboration with Tata Motors is central to our strategy of building a reliable and scalable electric logistics platform. As demand for sustainable logistics grows across sectors, we are focused on expanding our electric cargo fleet in a disciplined manner while delivering consistent uptime, operational efficiency, and measurable environmental impact."

A Tata Motors spokesperson, Business Head — SCV/EV, said, "Tata Motors remains committed to enabling the adoption of electric commercial mobility solutions in India. Collaborations with fleet operators such as Green Drive Mobility help extend the reach of our electric vehicle ecosystem across diverse logistics applications, while supporting cleaner and more sustainable transportation."

Green Drive Mobility's four-wheeler electric cargo fleet currently comprises over 250 vehicles serving sectors including FMCG, FMCD, e-commerce, catering, dairy, courier, and bakery. The company recently inducted an additional batch of Tata Ace EVs for operations in Bengaluru and Hyderabad for a multinational furnishings brand.

Green Drive Mobility also operates two-wheelers, three-wheelers, EV cabs, and electric buses, and offers fleet deployment, charging infrastructure, technology enablement, and workforce support as part of its Electric Vehicle-as-a-Service (EVaaS) model.

The Million-Unit Milestone: FY26 Redefines India’s Tractor Market

Anurag Chaturvedi — Fri, 10 Apr 2026 11:25:00

Few years in recent memory have brought together as many tailwinds for Indian tractor makers as fiscal 2026. An above-normal monsoon refilled rural cash flows. State governments in poll-bound Maharashtra and Bihar opened the subsidy taps. An unexpected cut in the Goods and Services Tax on tractors from 12 to 5 percent in late September lowered sticker prices overnight. And as the deadline for stricter TREM 5 emission norms drew closer, dealers and farmers pulled forward purchases they might otherwise have made later. By the close of March, the industry had sold more tractors than ever before.

Domestic wholesale dispatches are estimated to have risen by 23.47 percent to 11,60,231 units in FY26. Retail registrations tracked by FADA reached 10,50,077, up from 8,82,825 a year earlier. Both numbers are the highest the Indian tractor industry has recorded, and the first time wholesale volumes have crossed one million in a single fiscal year.

Mahindra & Mahindra retained its leadership by a wide margin. The group, which houses both the Mahindra and Swaraj brands, sold 5,05,930 tractors in the domestic market in FY26, a 24.28 percent rise over the previous year, lifting its wholesale share marginally to 43.61 percent. On the retail side, the Mahindra brand alone accounted for 23.81 percent of registrations and Swaraj for another 18.76 percent. In its April 1 statement, Veejay Nakra, president of Mahindra's Farm Equipment Business, said the company "ended FY26 with highest ever sales of 5,05,930 registering growth of 24%". He added that March alone delivered 43,403 units, a 33 percent jump "driven by the full Navratri season falling entirely in March'26, unlike last year when it was split between March and April".

The fastest gainer among the top six was CNH Industrial's New Holland, which expanded its wholesale volumes by 36.95 percent to 53,225 units and lifted its FADA-tracked retail sales by close to a third to 47,122 units. Speaking to Autocar Professional, Narinder Mittal, who heads CNH India, traced the year's outperformance to an effort that had begun nearly two years earlier, built on investments in network, brand and product. "Last year was a good year because of those actions we have taken," he said. The returns showed in the north. New Holland's market share in Punjab moved from around 11.5 to roughly 15 percent over the year, and in Haryana from about 6.5 to 9 percent. Mittal acknowledged that the September GST cut had caught the company off guard. "GST was something which was not expected," he said.

The Policy Tailwind

The single intervention that defined the year was GST 2.0, approved at the 56th Council meeting on September 3, 2025. The levy on tractors was cut from 12 to 5 percent with effect from September 22, lowering ex-showroom prices by ₹40,000 to ₹60,000 per unit depending on horsepower. The Council also reduced GST on tyres, tubes, hydraulic pumps and agricultural diesel engines from 18 to 5 percent, correcting a long-standing inverted duty structure.

Retail data tracked the change almost in real time. November 2025 was the industry's strongest month at around 1.26 lakh units, with December and January each holding at roughly 1.15 lakh.

Beyond GST, the fiscal backdrop was unusually supportive. The Union Budget for 2026-27 allocated ₹1,40,561 crore to the agriculture ministry. The Pradhan Mantri Kisan Samman Nidhi disbursed roughly ₹78,000 crore in four installments. The Sub-Mission on Agricultural Mechanisation continued to subsidise 40 percent of the cost of new equipment for general-category farmers and 50 percent for small, marginal, women and SC/ST buyers.

By January 2026, the Agriculture Infrastructure Fund had sanctioned ₹80,224 crore for over 1.5 lakh projects. Maharashtra's Mahayuti government ran the Namo Shetkari Mahasanman Nidhi, which adds ₹6,000 a year to PM-KISAN's ₹6,000, and committed ₹20,000 crore to a free-power scheme for irrigation pumps. Bihar, which went to the polls in November 2025, introduced a ₹3,000 state top-up to PM-KISAN that lifted the combined annual transfer for a Bihar farmer to ₹9,000, and offered subsidies of 40 to 80 percent on 91 categories of farm machinery. The pattern was clear in the sales data. "Maharashtra clearly outpaced pan-India growth by a decent margin," said Hemal Thakkar, senior director at CRISIL, attributing the gap partly to political factors.

The regional mix has shifted too. The northern belt still accounts for over a third of sales, but its growth has moderated relative to the rest of the country. The west was the strongest performer in FY26, taking nearly 40 percent of the market on year-on-year growth of up to 28 percent.

Trade policy added another layer. The India-UK Comprehensive Economic and Trade Agreement, signed in July 2025, grants 99 percent of Indian exports duty-free access to the British market from April 2026. The India-EU FTA was concluded on January 27, 2026, and the EFTA agreement with Switzerland, Norway, Iceland and Liechtenstein took effect on October 1, 2025, bringing with it a binding $100 billion investment commitment over 15 years. In early February, a reset with Washington lowered the effective US tariff on Indian goods from a stacked 50 to 18 percent, restoring competitiveness for exporters such as Mahindra and Sonalika after a bruising first half. Tractor exports are expected to cross 1 lakh units for the first time in FY26.

The looming implementation of TREM 5 shaped the second half of the year. The norms, comparable in scope to the BS-VI transition for passenger vehicles, will require diesel particulate filters and selective catalytic reduction systems on most tractor engines, and ICRA estimates this will add ₹1.5 lakh to ₹3 lakh to sticker prices once fully implemented. A draft notification from the Ministry of Road Transport and Highways has since proposed a phased rollout, starting with sub-25 HP and above-75 HP tractors in October 2026 and pushing the full norm for the dominant 25 to 75 HP segment to April 2032. Whether the prospect of those price increases pulled some FY27 demand into the closing months of FY26 remains contested. Thakkar is sceptical. "I don't think so," he said. "At the end of the day, the dealer knows the customer will come back to buy again in the future. Making a one-time push at the customer's expense is not a sustainable strategy for the dealer."

The Currents Beneath the Surge

The power profile of the Indian tractor market is shifting underneath these headline volumes. The 41-50 HP segment has grown from under half of all sales in FY19 to nearly two-thirds by FY26, largely at the expense of the 31-40 HP band. The 51 HP and above category has shrunk to a sliver. The industry appears to have settled on a band that suits both commercial haulage and the economics of custom hiring.

The first shift is the rise of non-farming use. Tractors are increasingly deployed for haulage, construction, sand mining and rural infrastructure work, and the share of commercially deployed units now varies, by various estimates, between 12 and 20 percent in normal years and considerably higher when rural construction activity is strong. An analyst who asked not to be named put the FY26 figure as high as 45 to 55 percent, citing the Vahan portal as the closest available source even though the absence of a separate commercial registration category for tractors makes precise measurement impossible.

Thakkar offers a more conservative band. "Whenever rural construction intensity is very high, commercial demand picks up," he said, noting that eastern states such as Bihar, West Bengal, Jharkhand and Odisha tend to have the highest commercial share. CNH's Mittal, too, said the company is "quite extensively working on the loader application" and on rig and trench-digging variants, with "a substantial improvement on these applications" expected this year.

The second shift concerns the land itself. The average operational landholding in India fell from 1.08 hectares in 2016-17 to 0.74 hectares in 2021-22, a product of inheritance laws, urbanisation and economic distress. On its face, this is a structural negative for an industry whose unit economics improve with scale. "Structurally, it should impact the industry negatively, because smaller farmland sizes reduce affordability," Thakkar said. The industry has so far defied that logic by moving up the horsepower curve, as labour shortages make mechanisation indispensable and as land consolidation through custom hiring offsets the fragmentation of ownership.

That brings the third trend into view. Custom Hiring Centres, which rent machinery to farmers who cannot justify the capital cost of ownership, have proliferated to 75,915 across India as of 2025, according to a recent review in the Asian Journal of Current Research. Punjab leads with 11,148 centres, followed by Andhra Pradesh and Haryana. Studies cited in the review suggest hiring through a CHC cuts the cost of cultivation by around 15.71 percent compared with private rentals and lifts net returns by 24 percent.

Financing remains the most reliable underpinning of demand. Roughly 95 percent of tractors sold in India are bought on credit, and 125 basis points of policy rate cuts delivered by the Reserve Bank in 2025 lowered borrowing costs for rural buyers.

Replacement demand, muted in 2023-24 because the cohort of tractors coming up for replacement was small, has also turned supportive. "The base coming up for replacement is from 2018-2019, which were strong years for the industry," Thakkar said, adding that a typical owner replaces a tractor every five to nine years.

Whether FY26 marks a new floor for the industry or an aberration will hinge largely on the rains. ICRA expects domestic tractor volumes to grow at a more modest 1 to 4 percent in FY27, citing the high base, the probability of an El Niño event, and the demand hangover after the GST-fuelled rush of the second half. CRISIL strikes a similar tone. "On a very high base, 20 percent plus for FY26, growth will be very muted. We will be happy if the industry grows at even a marginal single-digit level," Thakkar said. He flagged two specific risks for the year ahead. The first is the timely availability of fertilisers, made uncertain by the West Asia conflict, since a delay in supply during the sowing season directly impairs production. The second is the IMD's forecast of subpar rainfall, which in his view "could bring the industry down" if it materialises.

Even a flat year would leave the industry within striking distance of the run rate it touched in FY26. As one analyst, who requested anonymity, observed, "We have reached sales of 1,156,000 units, the highest ever recorded. Even if we are able to maintain around 1,127,000 units, that is still a very big number." The million-unit mark, in other words, may have begun to look less like a ceiling and more like a baseline.

Autocracy Machinery Supplies Weed Harvesters to Delhi's Irrigation Department

Shruti Shiraguppi — Mon, 06 Apr 2026 11:31:35

Autocracy Machinery has supplied two Rudra AquaMax 13M5T Dual-Purpose Weed Harvester cum Trash Skimmer machines to the Irrigation & Flood Control Department, Government of Delhi, for deployment at Najafgarh Drain near Punjabi Bagh Pul, on April 4, 2026, to improve water flow and reduce pollution levels in the drain ahead of the monsoon season.

The inauguration was attended by Shri Pravesh Sahib Singh, Minister of Irrigation & Flood Control Department; Smt. Kamaljeet Sehrawat, Member of Parliament, West Delhi; and Shri Kailash Gangwal, MLA, Madipur Assembly Constituency, along with senior government officials and local stakeholders. Officials noted this is the largest-capacity machine of its kind deployed in India to date.

The Rudra AquaMax 13M5T is a self-propelled machine built on a catamaran-based floating system. It operates across shallow and deep water bodies, including drains, canals, and under-bridge areas. A dual cutting system of vertical and horizontal blades handles dense vegetation, while a stainless-steel honeycomb conveyor enables continuous waste collection and discharge.

The machine runs on a 112 HP diesel engine, holds approximately 14.68 cubic metres of waste per cycle, and operates at 5–7 km/h. It is fitted with live HD camera surveillance and GPS tracking for real-time monitoring.

Santhoshi Sushma Buddhiraju, CEO and Co-founder of Autocracy Machinery, said: "Cleaner water systems are essential for sustainable cities, and we're committed to making that a reality through innovation."

Laxman Vallakati, CTO and Founder, said: "This is not just machinery, it's a solution designed to transform how cities manage waste in water bodies."

Autocracy Machinery manufactures heavy machinery for water management, construction, water treatment, and the energy sector.

Construction Equipment Slips, Only Segment in Decline

Shruti Shiraguppi — Mon, 06 Apr 2026 10:36:30

India's auto retail sector closed FY 2025-26 at an all-time high of nearly 2.97 crore units, with five of six vehicle categories posting annual records. Construction equipment (CE) was the exception — the only segment to finish the year in negative territory, declining 11.70% year-on-year to 71,227 units from 80,668 units in FY'25.

The Numbers in Context

The decline was consistent across both urban and rural geographies. Urban CE retail fell 8.99% over the full year, while rural CE fell a steeper 13.74%. In March 2026 — a month that saw the overall market surge 25.28% — CE volumes dipped 16.17% year-on-year to 6,906 units, compared to 8,238 in March 2025. Month-on-month, CE was essentially flat (up 2.75% from February's 6,721 units), offering little signal of a reversal.

OEM-Level Picture

JCB India retained its dominant position with a 48.62% market share in FY'26, though its absolute volumes fell from 39,782 to 34,632 units — a decline in excess of 13%. Action Construction Equipment, the second-largest player, also saw volumes drop from 9,258 to 7,416 units, with its market share contracting from 11.48% to 10.41%. Escorts Kubota's CE division, Tata Hitachi, and Case New Holland each posted modest volume declines as well. Ajax Engineering was among the few to hold roughly steady. The decline was therefore broad-based rather than concentrated in one or two players.

Fuel Mix: Almost Entirely Diesel

CE remains one of the most fuel-homogeneous segments in the market. Diesel accounted for 100% of CE retail in FY'26, effectively unchanged from FY'25's 99.78%. EV penetration, which stood at 0.14% in FY'25, slipped further to 0.10% in FY'26. CNG and petrol/ethanol together accounted for a negligible share in both years. This profile is consistent with the operational requirements of construction machinery, where diesel's energy density and refuelling infrastructure still have no practical alternative at scale.

What Likely Drove the Decline

Several factors appear to have weighed on CE volumes through the year, though the FADA data does not isolate causation directly.

First, CE is closely tied to infrastructure project execution rather than consumer sentiment — the primary driver that lifted most other vehicle segments in the second half of FY'26. GST 2.0's affordability effect, which proved significant for two-wheelers, passenger vehicles, and three-wheelers, had limited direct transmission to the CE segment, where buyers are typically contractors and project operators.

Second, the segment is sensitive to the pace of government capital expenditure disbursement and on-ground project activity. Project-level delays — whether from land acquisition bottlenecks, approval timelines, or seasonal construction lulls — can suppress equipment offtake even when broader infrastructure spending intentions are intact. FADA's own commentary noted project-level delays as a contributory factor.

Third, FY'25 may have provided a relatively elevated base. At 80,668 units, FY'25 CE volumes reflected a period of active infrastructure pipeline execution; any normalisation or delay in project commencement would show up as a decline in the following year.

FY'27 Outlook

Whether CE recovers in FY'27 will depend on factors outside the typical consumer demand cycle. If government infrastructure capex — particularly in roads, metro rail, urban development, and irrigation — translates into actual on-ground contract activity in the first two quarters, equipment demand should respond. The rabi harvest completion and improving rural cash flows noted in the FADA outlook are less directly relevant to CE than to tractors or two-wheelers.

The West Asia supply disruption flagged for April-June 2026 is worth monitoring for CE. While its most direct effects are on CV and PV supply chains, any broader disruption to global construction machinery components could affect lead times and variant availability.

The data points to economic slowdown risk (40.5% of dealers) and OEM supply disruption (30.5%) as the two most cited headwinds for the coming quarter. Both are plausible constraints for CE as well. At 71,227 units for the full year, CE sits at its lowest level.

Tractors Cross 10 Lakh Retail For The First Time

Shruti Shiraguppi — Mon, 06 Apr 2026 09:47:16

India's tractor market crossed a historic threshold in FY 2025-26 — 10,50,077 units retailed, the first time the segment has breached the 10-lakh mark. The 18.95 per cent YoY growth from 8,82,825 units in FY25 made tractors the fastest-growing vehicle category in the FADA universe, outpacing even two-wheelers and passenger vehicles.

March 2026 capped the year with 82,080 units (+10.87 per cent YoY), a healthy if unremarkable monthly reading that underscored the point: the growth was not a year-end spike but a sustained full-year story, built on the foundations of a strong south-west monsoon, robust rabi sowing season and improving farm economics.

The Mahindra Duopoly

The competitive landscape remains dominated by one group. Mahindra & Mahindra's tractor division (including the Swaraj brand) retailed a combined 4,46,948 units in FY26 — a commanding 42.57 per cent of the market. The Mahindra tractor brand alone held 23.81 per cent share (2,49,973 units), while the Swaraj division contributed 18.76 per cent (1,96,975 units). Both divisions gained marginal share: Mahindra tractor from 23.57 per cent and Swaraj from 18.75 per cent.

The combined Mahindra tractor franchise is, in absolute terms, larger than many PV manufacturers. Its 4.47 lakh units exceed Hyundai's domestic PV volumes (5.85 lakh) by a thinner margin than one might expect — a reminder of the economic weight of farm mechanisation in India.

The Challengers

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

The more interesting movement was at Escorts Kubota, which climbed to 10.90 per cent share (1,14,468 units) from 9.93 per cent — the biggest share gain among the top five. The 30.6 per cent 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 held steady at 7.63 per cent (80,086 units), Eicher Tractors slipped marginally to 6.21 per cent (65,215 units), while CNH Industrial gained at 4.49 per cent (47,122 units, up from 4.05 per cent) — another sign that global tractor partnerships are reshaping the competitive order.

In March specifically, the share picture was broadly similar: Mahindra at 23.94 per cent, Swaraj at 19.50 per cent, Sonalika at 12.42 per cent, Escorts Kubota at 10.87 per cent and TAFE at 10.34 per cent.

What drove the 10-lakh milestone

The tractor market's performance is intrinsically tied to the agricultural economy, and FY26 delivered a near-ideal confluence of positive factors. The 2025 south-west monsoon was the best in several years, with cumulative rainfall marginally above the long-period average. This translated into strong kharif crop production, healthy reservoir levels heading into the rabi season, and improving rural cash flows from October onwards — precisely the period when tractor demand traditionally peaks.

The rabi sowing season was equally robust, with acreage for wheat, mustard and pulses expanding. Government MSP increases, direct benefit transfers and improving terms of trade for agriculture all contributed to an environment where farm incomes were rising and confidence was high.

The rural-urban dynamic in the tractor segment is distinctive. Tractors are overwhelmingly rural: 81 per cent of tractor retail in FY26 came from rural RTOs, a ratio that has been remarkably stable (it was 81.5 per cent in FY25). Urban tractor demand (19 per cent), which includes peri-urban construction and haulage applications, grew 22.37 per cent — faster than rural's 18.17 per cent — suggesting expanding non-agricultural uses.

The Mechanisation Thesis

India's farm mechanisation levels remain low by global standards — approximately 47 per cent compared to over 90 per cent in developed markets. The 10-lakh retail milestone, while historic, represents penetration that still has significant headroom. The average Indian farm holding (1.08 hectares according to the Agricultural Census) is too small for most tractors, which means the market is driven by medium and large farmers, custom hiring centres and institutional buyers. As farm consolidation proceeds — slowly but perceptibly — and as custom hiring models proliferate, the addressable market should continue to expand.

The FY27 outlook hinges on monsoon performance (the IMD's initial forecasts, when they arrive, will be the single most important data point for the segment) and the continuation of supportive agricultural policy. If the monsoon delivers a third consecutive normal-to-good year, tractors could well sustain double-digit growth and potentially approach 11.5 lakh units

India's Tractor Market Closes FY26 at Full Throttle, But Growth Rates and Trajectories Diverge Sharply Across OEMs

Shruti Shiraguppi — Fri, 03 Apr 2026 12:22:45

India's domestic tractor market delivered a strong fiscal year-end in March 2026, with all three major OEMs reporting double-digit year-on-year volume growth in the month. The headline numbers, however, mask a widening divergence in growth rates across players — a divergence that may reflect competitive dynamics, company-specific factors, or simply differences in the strength of each OEM's underlying demand base during the period.

March 2026: The Headline Numbers

Mahindra & Mahindra's Farm Equipment Sector led the month in absolute volume with 45,035 total units sold — 43,403 domestically and 1,632 via exports — representing 29% overall growth and 33% domestic growth year-on-year. At an estimated 44% domestic market share, Mahindra's March performance reinforces a structural lead that has proven durable across demand cycles.

Sonalika Tractors reported 16,450 domestic units in March 2026, its highest-ever March volume, representing 33% year-on-year growth. The figure marked sequential acceleration of 27.6% from February's 12,890 units — itself a record for that month — and closed FY26 at 1,86,402 total units, up 21% from FY25's 1,53,764 units, also a record annual figure for the brand.

Escorts Kubota posted domestic tractor sales of 11,582 units in March 2026, a 7.5% year-on-year gain from 10,775 units, bringing total March volumes including exports to 12,119 units — up 6.6% overall. Its full-year FY26 domestic volume expansion of 14.9% trails both Sonalika and Mahindra on a comparable basis.

Share Dynamics and Growth Differentials

Mahindra and Sonalika both posted domestic growth of 33% in March — a rate more than four times Escorts Kubota's 7.5%.

Sonalika's FY25 retail market share stood at approximately 12.51% to 14.8% on a wholesale dispatch basis. FY26's 21% full-year growth rate positions it for incremental share gains, though final industry-wide figures are pending.

Escorts Kubota's full-year FY26 tractor volume of 1,33,670 units — up 15.7% from 1,15,554 units in FY25 — is a solid absolute outcome. Whether this translated into market share compression relative to peers will depend on where final industry volumes land.

Export Divergence

The export picture adds another variable. Escorts Kubota's March 2026 export volumes fell 10.4% to 537 units from 599 units in March 2025, following a 1.3% dip in February. For context, FY26 exports grew 33.8% for the full year — substantially outpacing the 14.9% domestic growth — making the recent monthly deceleration a trend worth watching, though it is too early to characterise it as structural.

Mahindra's March export volumes of 1,632 units reflected a 31% year-on-year decline, indicating that some degree of international demand softness may be broader than any single OEM. Mahindra's larger domestic base, however, means export movements have a proportionally smaller effect on its headline numbers.

Escorts Kubota's construction equipment division reported 765 machines in March 2026, up 24.6% from 614 in March 2025. Full-year FY26, however, came in at 5,794 machines — a 10.6% contraction from FY25's 6,484 units. A sequential Q4 FY26 recovery of 1,877 machines (up 9.2% year-on-year) partially offset weakness accumulated in earlier quarters but was insufficient to close the annual gap.

All three OEMs face broadly shared sectoral risks heading into FY27, including Kharif season demand continuity and fertilizer availability, the latter flagged explicitly by Escorts Kubota as a geopolitical supply-chain risk. Reservoir levels remaining above normal as of March provide a near-term buffer.

Sonalika Tractors March Sales Up 33%, FY26 Annual Growth at 21%

Shruti Shiraguppi — Fri, 03 Apr 2026 11:30:20

Sonalika Tractors (International Tractors Ltd.) reported domestic tractor sales of 16,450 units in March 2026, representing 33% year-on-year growth and marking the highest-ever March sales in the company's history. The performance closed fiscal year 2026 with record annual sales of 1,86,504 units, up 21% from FY25's 1,53,764 units.

March 2026's volume represented substantial 27.6% sequential growth from February 2026's 12,890 units, driven by favorable agricultural conditions and the full Navratri purchasing season falling within the month. The year-on-year comparison shows acceleration from March 2025's agro-climatic challenges that slowed tractor retail sales during the prior fiscal year-end.

Monthly Performance and Seasonal Factors

The company attributed March's strong performance to robust rabi sowing area expansion, healthy reservoir levels, and favorable kharif harvest outcomes strengthening cash flows in rural markets. These positive agricultural sentiments, combined with the complete Navratri festival period occurring in March 2026—unlike March 2025 when the season split between March and April—contributed to the elevated monthly volumes.

February 2026's 12,890 units had marked the highest-ever sales for that month, following December 2025's record 12,392 units. March's 16,450 units continued this sustained demand trajectory, indicating consistent rural market momentum through the critical rabi season purchasing window.

Market Position

FY26's total sales of 1,86,402 units substantially exceeded FY25's previous record of 1,53,764 units, representing the company's highest-ever annual tractor sales. The 21% fiscal-year growth rate indicates market share expansion within India's domestic tractor industry, which experienced broad-based growth driven by favorable monsoons and government support for agricultural infrastructure.

Sonalika's FY25 performance had secured an estimated 14.8% market share based on wholesale dispatches, establishing the company as a significant player in India's tractor manufacturing sector. FY26's 21% growth rate positions Sonalika for potential further market share gains, though the company has not yet disclosed final FY26 market share figures pending industry-wide data compilation.

Sonalika maintained 12.51% retail market share during a period when overall tractor retail sales faced headwinds from agro-climatic challenges. The contrast between March 2025's difficult conditions and March 2026's favorable environment contributed to the strong year-on-year growth comparison.

The sustained sales momentum through FY26 reflects increased rabi sowing activity, improved rural cash flows, and enhanced product offerings including the newly launched Gold Series tractors. Sonalika's product range spans multiple horsepower categories with technologically advanced features addressing diverse agricultural applications across India's varied agro-climatic zones.

The company maintains its position as a leading tractor exporter alongside its domestic manufacturing operations, though export volumes are not disclosed in monthly sales reports.

ICRA Estimates Tractor Industry Volumes at Record 11.3-11.5 Lakh Units in FY2026; Growth to Slow to 1-4% in FY2027

Shruti Shiraguppi — Thu, 02 Apr 2026 14:10:41

India's tractor industry is on course to record its highest-ever annual wholesale volumes of 11.3-11.5 lakh units in FY2026, driven by above-normal monsoons, a reduction in GST on tractors from 12% to 5%, and pre-buying ahead of TREM V emission norms, according to ICRA's March 2026 sector report. The agency expects growth to slow sharply to 1-4% in FY2027 on the back of the elevated base.

Wholesale volumes grew 22.8% year-on-year in the first 11 months of FY2026, while retail volumes rose 19.3% over the same period. The GST reduction reduced tractor prices by ₹40,000 to ₹1,00,000 across horsepower ranges. Pre-buying that had been expected ahead of TREM V norms — originally scheduled for April 2026 but subsequently deferred also contributed to the volume surge, though ICRA noted this tailwind is now expected to ease.

Agricultural output data supports near-term demand: the Ministry of Agriculture and Farmers' Welfare's Second Advance Estimates, released on March 10, 2026, showed both kharif and rabi food grain output for AY2025-26 rising 3% year-on-year over final AY2024-25 estimates. India recorded 108% of the long-period average rainfall in CY2025, keeping reservoir levels above historical averages.

However, ICRA flagged potential El Niño conditions in the latter half of 2026 as a downside risk to farm output and tractor demand in FY2027. Dealer inventory levels were assessed as normal, and financing availability remained healthy with moderate delinquency levels. Tractor OEM credit profiles were described as strong, supported by low debt levels and adequate cash and liquid investments.

Eicher Motors Reports Mixed March Sales

Angitha Suresh — Wed, 01 Apr 2026 17:16:20

Eicher Motors reported divergent sales performance across its two business units in March 2026, with its Royal Enfield motorcycle division coming in slightly above analyst estimates and its commercial vehicle joint venture, VE Commercial Vehicles (VECV), falling marginally short of expectations. The results round off a strong financial year for both divisions, with each recording double-digit full-year growth.

Royal Enfield sold 112,300 units in March, up 11% year-on-year, against an analyst estimate of 109,000 units. Domestic volumes led the performance at 100,400 units, a 14% increase over the same period last year and ahead of the 98,000-unit estimate. Exports, however, declined 8% year-on-year to 11,900 units, though they still came in modestly above the 11,000-unit estimate, partially offsetting the weakness in international markets.

For the full financial year FY26, Royal Enfield sold 1.24 million units, representing 23% growth over FY25 — a notable acceleration for a brand that has historically grown in the high single digits. Analysts attribute the strong domestic showing to a combination of factors: targeted product interventions across key models, reductions in the Goods and Services Tax applicable to certain motorcycle segments, and a step-up in marketing activity. The division is expected to sustain double-digit volume growth in FY27, with further market share gains anticipated within the mid-size motorcycle category.

The export decline, while modest in absolute terms, reflects ongoing headwinds in select international markets where currency pressures and softer consumer sentiment have weighed on demand. Royal Enfield has been expanding its footprint across markets in Southeast Asia, Europe, and Latin America, and the pace of recovery in these regions will be a factor analysts will monitor in the quarters ahead.

VECV, the 50:50 joint venture between Eicher Motors and Volvo Group that manufactures trucks and buses under the Eicher and VE brands, sold 13,300 units in March, up 10% year-on-year but below the estimate of 13,900 units. The shortfall, while relatively small, points to some near-term softness in freight and infrastructure activity that typically drives commercial vehicle purchases. For FY26, VECV recorded total sales of 103,500 units, a 15% increase over the prior year, crossing the 100,000-unit milestone for the first time.

Growth for VECV in FY27 is projected to moderate to the single digits, supported by improving vehicle affordability and replacement demand from an ageing fleet in the commercial vehicle segment. Industry observers note that a significant portion of India's commercial vehicle fleet is due for replacement over the next two to three years, which is expected to provide a structural demand floor even as cyclical freight volumes remain uneven.

Eicher Motors, listed on the BSE and NSE, operates Royal Enfield as a wholly owned subsidiary and holds a 54.4% stake in VECV. Royal Enfield competes in the mid-size motorcycle segment, primarily in the 250cc–750cc range, a category it has dominated in India for several years. The brand has been making efforts to premiumise its portfolio and reduce dependence on legacy models such as the Classic and Bullet series by introducing newer platforms.

VECV, meanwhile, addresses the light, medium, and heavy commercial vehicle markets in India and select export markets. The joint venture has invested in upgrading its product range to meet stricter emission standards and has been expanding its network in tier-2 and tier-3 cities to tap into demand outside major urban freight corridors.

The March figures are the last monthly data point of FY26 and are likely to be closely watched by investors ahead of the company's full-year earnings announcement, where margins, realisations per unit, and the outlook for each segment will be in focus.

Force Motors Reports 20% Rise in Domestic Sales for FY2025-26

Angitha Suresh — Wed, 01 Apr 2026 16:38:08

Force Motors Limited sold 36,536 vehicles in the domestic market in FY2025-26, a 20% increase over the 30,531 units sold in FY2024-25, the company announced on 1 April 2026. In March alone, the company closed the fiscal year on a firm note, with monthly sales rising 14% to 4,126 units compared to 3,606 units in March 2025.

The results mark one of the stronger annual performances in the company's recent history, with demand holding across both urban and rural passenger mobility segments as well as institutional and defence businesses. The breadth of the growth — spanning entry-level utility vehicles, premium passenger vans, and specialised defence platforms — points to a deliberate effort by the company to reduce dependence on any single product line.

The Force Urbania, a ground-up monocoque passenger van platform introduced to address the premium shared mobility segment, more than doubled its sales volumes during the year. The company said the product has seen growing adoption among fleet operators, corporate staff mobility buyers, and institutional clients. Force Motors has positioned the Urbania on the basis of comfort, safety, and total cost of ownership — attributes it says are driving preference among both operators and end users. Having established a foothold in India, the Urbania is also being expanded into select international markets.

The Trax platform, designed for use in challenging terrains and aimed at Tier-2 and Tier-3 markets, recorded over 70% growth in volumes. The company attributed the model's performance partly to GST rationalisation, which it said improved affordability and enabled deeper penetration in markets where demand for rugged and reliable transport remains strong. The Trax has historically served buyers in semi-urban and rural geographies where road conditions and cost sensitivity shape purchase decisions.

The Force Traveller, the company's flagship light commercial vehicle and its longest-standing product, held a market share of over 70% in its segment. Used widely in school transport, ambulance services, and general passenger movement, the Traveller has maintained its position as the dominant vehicle in the light commercial van category for several years. The continued strength of the model provides the company with a stable revenue base even as newer products scale.

In the defence sector, Force Motors delivered the first batch of 600 Gurkha units to the Indian Army during the year, through its Special Vehicle Division. The Gurkha, available in three-door and five-door variants, is built for off-road and high-altitude use and has been part of Force Motors' engagement with India's armed forces. The company described the delivery as a reinforcement of its longstanding association with defence institutions and its engineering capability to build purpose-built vehicles for demanding conditions.

On exports, four-wheeler shipments grew 13% year-on-year. However, Managing Director Prasan Firodia flagged some caution on the outlook, noting that the company has a meaningful presence in Gulf markets and is closely watching developments in the region given the evolving geopolitical situation.

"Our performance this year reflects the way we are steadily shaping the business — being more focused, disciplined, and aligned to the segments where we know and believe that we can lead," Firodia said. "We will continue to build on our strengths with consistency, while staying responsive to evolving market needs."

Force Motors was founded in Pune in 1958 by N. K. Firodia with a stated aim of providing affordable and reliable transportation for the masses. Today, the company operates five manufacturing facilities across India, employs over 10,000 people, and is led by Dr. Abhay Firodia. Its research and development centre in Pune, staffed by a design team of over 1,000 engineers, handles vehicle development across its product range.

The company's business extends beyond its own vehicle brands. Force Motors produces and tests engines for all BMW and Mercedes-Benz cars and SUVs assembled in India — a manufacturing relationship that reflects its precision engineering credentials. Its Chennai plant, built to BMW's standards, powers every BMW assembled in the country, while its Chakan facility in Pune does the same for Mercedes-Benz.

Force Motors also operates Force MTU Power Systems, a joint venture with Rolls-Royce Power Systems AG, which manufactures 10 and 12-cylinder Series 1600 engines ranging from 545 hp to 1,050 hp at Chakan, Pune. These engines are supplied globally for power generation and underfloor rail applications. The company's export footprint spans the Middle East, Gulf region, Asia, Latin America, and Africa.

VECV Crosses 1 Lakh CV Sales in FY26, Logs Record Production and Deliveries

Arunima Pal — Wed, 01 Apr 2026 14:50:43

VE Commercial Vehicles (VECV) crossed the 100,000-unit annual sales milestone for the first time in FY26, marking its highest-ever yearly volumes, as strong demand across segments boosted growth.

The company, a joint venture between Volvo Group and Eicher Motors, reported sales of over 1 lakh commercial vehicles during the financial year, underpinned by robust performance in light and medium duty (LMD) trucks, heavy duty (HD) trucks and buses.

LMD trucks accounted for 47,789 units, contributing 46.1% to total volumes, followed by HD trucks at 26,867 units (25.9%) and buses at 19,363 units (18.7%).

The milestone reflects the company’s expanding product portfolio, focus on application-specific solutions, and emphasis on fuel efficiency and uptime, alongside a growing network and manufacturing footprint.

VECV said the achievement also aligns with the original vision of the Volvo–Eicher joint venture, established in 2008, to build a competitive and technology-led commercial vehicle business in India.

The company continues to invest in future-ready and sustainable mobility solutions, supported by initiatives such as connected vehicle platform Eicher Live and early adoption of BS-VI technologies.

With eight manufacturing facilities across India—including an Industry 4.0-enabled plant in Bhopal and an integrated hub at Pithampur—the company is further expanding capabilities with a new automated manual transmission (AMT) plant in Ujjain.

Backed by a network of over 1,250 touchpoints and a growing export presence, VECV said it remains focused on driving the next phase of growth through innovation, sustainability and deeper customer engagement.

Ashok Leyland Posts 5% Rise in March 2026 Sales as Bus Segment Contracts

Shruti Shiraguppi — Wed, 01 Apr 2026 14:27:07

Ashok Leyland sold 25,381 commercial vehicles, domestic and exports combined in March 2026, a 5% increase over 24,060 units in March 2025, according to a regulatory filing. The figure fell short of analyst estimates of 27,500 units, with weakness in the bus segment offsetting gains in trucks and light commercial vehicles.

Domestic sales for the month stood at 23,743 units, up 5% from 22,510 units a year earlier. Within this, domestic M&HCV volumes were broadly flat at 16,238 units, as truck sales rose 10% year-on-year to 14,138 units but bus sales contracted 34% to 2,100 units. Including exports, total M&HCV volumes reached 17,518 units, down from 16,901 units last year, reflecting the sharp bus decline.

The Light Commercial Vehicle segment continued to provide support. Domestic LCV sales grew 17% to 7,505 units from 6,428 units in March 2025, in line with estimates. Combined with exports, total LCV volumes reached 7,863 units, up 12% year-on-year.

Exports overall stood at 1,638 units, a 6% increase from 1,550 units in March 2025, matching expectations.

On a full-year basis for FY2025-26, Ashok Leyland’s total sales including exports reached 2,20,437 units, a 13% increase from 1,95,097 units in FY2024-25. Domestic volumes rose to 2,02,355 units, also up 13% year-on-year. Segmentally, M&HCV trucks grew 14% to 1,09,977 units, buses expanded 12% to 32,681 units, and LCVs climbed 13% to 77,779 units, underscoring broad-based growth across the portfolio despite near-term pressures in the bus category.

Tata Motors CV Sales Rise 17% in March; Q4 up 25%

Arunima Pal — Wed, 01 Apr 2026 14:09:18

Tata Motors reported total commercial vehicle (CV) sales of 47,976 units in March 2026, registering a 17% year-on-year (YoY) increase compared to 41,122 units in the same month last year, even as growth moderated slightly amid geopolitical headwinds.

For the fourth quarter (Q4 FY26), the company posted sales of 1,32,465 units, up 25% YoY from 1,05,643 units in Q4 FY25, driven by a recovery in freight activity and improved demand conditions in the second half of the fiscal.

Across segments, heavy commercial vehicle (HCV) trucks grew 14% YoY in March to 14,614 units, while intermediate, light and medium commercial vehicle (ILMCV) trucks rose 16% to 8,337 units. Passenger carriers saw a sharp 31% jump to 7,983 units, and small commercial vehicles (SCV) cargo and pickups increased 17% to 14,891 units.

Domestic CV sales stood at 45,825 units in March, up 18% YoY, while international business (IB) volumes declined 4% to 2,151 units.

On a quarterly basis, domestic CV sales rose 26% YoY to 1,25,562 units, marking the highest quarterly volumes since Q4 FY21.

For the full financial year FY26, total CV sales grew 14% YoY to 4,28,329 units, compared to 3,76,903 units in FY25, reflecting broad-based growth across segments.

The company noted that the CV industry witnessed a subdued first half, followed by a strong recovery in H2, supported by improved demand conditions and policy measures such as GST 2.0 rollout.

However, March growth saw some moderation due to the ongoing conflict in West Asia, which impacted select sectors and operating conditions. The company said it is closely monitoring geopolitical developments and diesel price trends, while focusing on maintaining supply chain resilience and production continuity.

Electric vehicle volumes grew 59% YoY during FY26, highlighting continued traction in the electrification space.

Looking ahead, the company remains cautiously optimistic, backed by a refreshed product portfolio and sustained focus on customer-centric mobility solutions.

EKA Mobility Reports Fivefold Sales Growth in FY 2025–26

Angitha Suresh — Wed, 01 Apr 2026 13:47:51

EKA Mobility sold 1,143 electric commercial vehicles in FY 2025–26, a fivefold increase over the previous year, the company announced on April 1. The company also produced 1,344 units during the same period. The results position EKA among the faster-growing players in India's electric commercial vehicle market, a segment that has seen increasing activity as fleet operators and government bodies accelerate the shift away from diesel-powered transport.

The company attributed the volume increase to the expansion of its product portfolio across multiple segments. In addition to its existing electric bus and small commercial vehicle (SCV) lineup, EKA Mobility entered the medium and heavy commercial vehicle (M&HCV) truck segment this fiscal year — a move that added a new revenue stream and broadened its addressable market. The entry into long-haul and logistics electrification is particularly notable, as the heavy trucking segment has historically been slower to transition to electric powertrains due to range, payload, and charging infrastructure constraints.

In the electric bus segment, EKA secured orders under two national government programs — PM e-Bus Sewa and PM E-DRIVE — and deployed vehicles across more than 15 states, including Maharashtra, Gujarat, Uttar Pradesh, Karnataka, and Delhi. These programs, which are part of the central government's push to electrify public transport in urban areas, have been a significant demand driver for domestic bus manufacturers. EKA's ability to qualify and win orders under both schemes points to its standing as a certified, homologated supplier at scale.

The company also reported growth in its SCV category, with newly launched 3S and 6S passenger variants and three-wheeler cargo platforms gaining traction in last-mile and intra-city transport. The SCV segment has seen strong demand in India's smaller cities and dense urban corridors, where lower upfront costs and shorter route lengths make electric vehicles more viable for operators.

Beyond battery-electric platforms, EKA Mobility is also pursuing hydrogen fuel cell technology. The company deployed a 9-metre hydrogen fuel cell bus at Cochin International Airport, developed in collaboration with KPIT Technologies and Bharat Petroleum Corporation Limited (BPCL). It has indicated plans to deploy 15 additional hydrogen fuel cell buses in the coming months. While hydrogen fuel cell vehicles remain at an early stage of commercial deployment in India, the segment has attracted government interest as a complement to battery-electric solutions for longer routes and heavier applications.

On the manufacturing side, EKA currently operates two facilities in Pune — in Koregaon Bhima and Chakan — and is preparing a third plant in Pithampur, Madhya Pradesh, which is expected to become operational shortly. The addition of the Pithampur facility is part of a broader capacity build-out. Once fully scaled, the company's planned annual production capacity will stand at 10,000 buses, 6,000 trucks, and 24,000 SCVs. EKA also said it maintains one of the country's largest commercial EV research and development teams, though it did not disclose the headcount.

The company's retail footprint has also expanded. Its dealership network has grown across the country and is set for further expansion, with 120 additional dealerships planned for FY 2027, covering Tier 1, Tier 2, and Tier 3 cities. Widening distribution into smaller markets is a common challenge for commercial EV manufacturers, where after-sales service infrastructure and technician availability can influence purchasing decisions among fleet operators. EKA also holds a confirmed order book of over 6,000 electric buses to be delivered within the next two years, providing near-term revenue visibility.

Outside India, EKA Mobility has begun electric bus deployments in Africa and signed a strategic agreement with the Kerchanshe Group for CKD assembly and distribution across the continent. It has also signed an agreement with NBFI Capital to manufacture electric buses in Australia. International expansion at this stage of the company's growth reflects an effort to diversify beyond the domestic market and establish manufacturing and distribution footholds in regions where electric public transport infrastructure is still being built out.

EKA Mobility holds Champion OEM status under the Government of India's Automotive Production Linked Incentive (PLI) Scheme and has received PLI certification across multiple platforms. The PLI scheme for the automotive sector, launched in 2021, offers incentives to manufacturers that meet minimum domestic value addition thresholds and achieve sales growth targets.

The company is backed by Mitsui & Co. (Japan), VDL Groep (Netherlands), Pinnacle Industries Limited, Enam Holdings, and the NIIF India-Japan Fund — a mix of industrial, financial, and strategic investors with exposure to global mobility and manufacturing.

Escorts Kubota Ends FY26 with 6.6% Tractor Growth and 24.6% Jump in Construction Equipment Sales in March 2026

Angitha Suresh — Wed, 01 Apr 2026 12:30:30

Escorts Kubota Limited sold 12,119 tractors in March 2026, up from 11,374 units in March 2025. Construction equipment sales rose to 765 machines from 614 machines in the same period. The figures were disclosed to BSE Limited and the National Stock Exchange of India on April 1, 2026, in compliance with SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

The March numbers bring the curtain down on what has been a broadly positive year for the company's Agri Machinery division, following a particularly strong February. Escorts Kubota sold 10,339 tractors in February 2026, up 20.4% from 8,590 units in February 2025. Domestic tractor sales in February rose 22.1% to 9,725 units compared to 7,968 units in the same month the previous year. The March growth rate, while more moderate at 6.6%, still reflects a continuation of that upward trend.

Domestic tractor volumes in March 2026 stood at 11,582 units, a 7.5% increase over the 10,775 units sold in March 2025. The company said performance was supported by sustained rural demand and the gradual onset of Rabi harvesting in select regions. It added that while harvesting activities were delayed in some areas due to rainfall, reservoir levels across the country remained above normal, which is expected to support agricultural activity in the coming months.

Export sales, however, moved in the opposite direction. March 2026 exports came in at 537 tractors, a 10.4% decline from 599 units in March 2025. This mirrors the trend seen a month earlier, when export sales dipped marginally to 614 units in February 2026 from 622 units, a drop of 1.3%. The company has not provided a specific explanation for the export weakness, though it has flagged the evolving geopolitical environment as a source of intermittent supply-side risk.

For the full financial year April 2025 to March 2026, total tractor sales reached 1,33,670 units, a 15.7% increase over the 1,15,554 units sold in FY25. Domestic volumes for the full year grew 14.9%, while exports rose 33.8%. On a cumulative basis for the April–February period of FY26, total tractor sales had already reached 1,21,551 units against 1,04,180 units in the same 11-month period of FY25, a rise of 16.7%. The March additions placed the company firmly above its prior-year full-year total.

The company attributed the tractor growth seen earlier in the year to rural sentiment, farm activity, government policies, a GST reduction, and expectations around the Rabi season. Looking ahead, the company cautioned that the geopolitical situation poses risks to the availability of key fertilizers, which could affect Kharif crop preparedness — a factor that may weigh on demand in the first half of FY27.

On the construction equipment side, the March performance was notably firm. The 765 machines sold in March 2026 represented a 24.6% jump over 614 machines in March 2025. This was a step up from February, when the company sold 588 machines, up 4.8% from 561 machines in February 2025. The company said demand in March was supported by steady project execution and a growing order pipeline, though global supply chain uncertainty tied to geopolitical tensions remains a near-term risk.

The full-year construction equipment picture was more mixed. Total sales for FY26 came in at 5,794 machines, a 10.6% decline from the 6,484 units recorded in FY25. The cumulative 11-month figure for FY26 had already stood at 5,029 machines, down 14.3% from 5,870 units in the same period of FY25. The strong Q4 performance — 1,877 machines in January–March 2026, up 9.2% year-on-year — suggests some recovery in the final quarter, though it was not enough to close the full-year gap.

Escorts Kubota Limited operates two primary business divisions — Agri Machinery and Construction Equipment — and has been in manufacturing for over eight decades. The company traces its origins to Escorts Limited and is listed on both BSE (500495) and NSE (ESCORTS). Its registered office is located in Faridabad, Haryana. The disclosures were signed by Bharat Madan, Whole Time Director and Chief Financial Officer.

ZF's Indian Arm Wins ADAS Contract for Bus Platforms from Domestic OEM

Angitha Suresh — Tue, 31 Mar 2026 14:10:28

ZF Commercial Vehicle Control Systems India Limited (CVCS), headquartered in Chennai, has been nominated by a new-age mobility original equipment manufacturer (OEM) to develop and supply an Advanced Driver Assistance System (ADAS) suite for its upcoming bus platforms. The scope of the nomination covers system supply, vehicle integration, calibration and validation. Start of production (SOP) is targeted for the first quarter of 2027.

The contracted system is built around ZF's OnGuardMAX platform, which the company describes as its most advanced driver assistance system for commercial vehicles. It combines a front camera, mid-range radar and an image processing module to enable Autonomous Emergency Braking (AEB) along with a broad range of driver assistance functions. Complementing OnGuardMAX, ZF's Short-Range Radar (SRR) provides near-field coverage on the sides and front of the vehicle, targeting critical blind spots to protect vulnerable road users. Up to three SRRs can be integrated into a single platform, a capability considered particularly relevant for large bus configurations where blind spot coverage is more demanding. The latest generation of SRR is also designed to interface directly with OnGuardMAX, extending the system's overall detection range.

The solution additionally integrates ZF's Electronic Braking System (EBS) and Electronic Stability Control (ESC), creating a unified architecture that links active safety, braking and stability functions. This integration is intended to deliver shorter stopping distances, controlled deceleration and improved rollover resistance — characteristics considered especially relevant for electric bus platforms given their weight distribution and operational profiles. Together, the combined system is designed to reduce accident exposure, optimise brake wear, lower vehicle downtime and support more consistent route performance.

In terms of regulatory coverage, the full suite spans 16 driver assistance functions, including the five features mandated under India's GSR 184(E) safety regulation: Autonomous Emergency Braking System (AEBS), Lane Departure Warning System (LDWS), Driver Drowsiness and Attention Warning (DDAW), Moving Off Information System (MOIS) and Blind Spot Information System (BSIS). The system has been validated over 450,000 kilometres of Indian road testing and carries certification from the Automotive Research Association of India (ARAI) for GSR 184(E) compliance. The platform architecture is designed to scale to SAE Level 2 automation, positioning it to accommodate future regulatory and OEM requirements beyond the current mandate.

Paramjit Singh Chadha, Managing Director of ZF CVCS India, said the company combines local understanding of Indian road and operational conditions with global engineering resources from the ZF Group, and that ADAS remains a strategic priority for the business. Akash Passey, Non-Executive Chairman of ZF CVCS India and President of ZF Group India, pointed to a rapid acceleration in demand for driver assistance technologies among both established and new-age electric mobility OEMs in India, and said the company's approach centres on adapting global engineering expertise to the specific requirements of the Indian market.

India's commercial vehicle safety regulation landscape has been evolving, with GSR 184(E) forming part of a broader push by the government to align domestic vehicle safety standards with international benchmarks. The regulation mandates the fitment of specific active safety systems on buses and other commercial vehicles, creating a compliance-driven market for ADAS suppliers alongside organic demand from fleet operators and OEMs seeking to differentiate on safety. ZF CVCS India's locally validated and ARAI-certified suite is positioned to address both compliance and performance requirements in this environment.

ZF CVCS India is a subsidiary of ZF Friedrichshafen AG, a German technology group with approximately 153,000 employees globally and reported sales of €38.8 billion in fiscal year 2025. The group operates 162 production locations across 29 countries and serves segments ranging from passenger cars and commercial vehicles to construction machinery, wind power and rail drives. The Indian subsidiary employs approximately 4,600 people across six manufacturing facilities, operates a technology development support centre and a vehicle testing facility, and reported total revenue of ₹3,939.2 crore in fiscal year 2024–25.

The nomination is the latest in a series of ADAS contracts secured by ZF CVCS India from domestic commercial vehicle manufacturers, reflecting growing adoption of active safety technologies across the Indian bus and truck segments. ZF has separately clarified that a previously reported divestment of ADAS activities within its passenger car division has no bearing on its commercial vehicle operations. Those activities remain fully within the group's Commercial Vehicle Solutions (CVS) division, with dedicated engineering teams and governance structures intact, covering trucks, tippers, trailers, coaches and bus applications across both domestic and export markets.