India’s tractor industry posted a record-breaking performance in FY26, with annual sales crossing the 10 lakh mark for the first time, driven by sustained rural demand, a reduction in GST rates, and robust agricultural output.
According to the Federation of Automobile Dealers Associations (FADA), tractor sales reached 10.50 lakh units in FY26, marking a 19 per cent growth over 8.22 lakh units recorded in the previous fiscal.
Data from the Tractor and Mechanization Association also showed strong momentum, with total industry sales touching 11.60 lakh units, an 18 per cent increase from 9.39 lakh units in FY25.
FADA described tractors as the standout performer of the year, noting that retail sales crossed one million units for the first time in history. The surge was attributed to an excellent monsoon, strong rabi sowing, and improving farm economics.
Mahindra & Mahindra (Tractor) led the table with a market share of 23.81 per cent in FY26 (23.57 per cent) while its Swaraj Division in the second position with a market share of 18.76 per cent (18.75 per cent). International Tractors Ltd, Tafe and Escorts Kubota Ltd occupied the next three spots, according to FADA.
Chennai-based TAFE Ltd reported its highest-ever annual performance, with total tractor sales of about 2,14,951 units in FY26. The company also recorded its highest domestic sales, with both Massey Ferguson and Eicher Tractors brands achieving record volumes.
Lakshmi Venu, Vice-Chairman of TAFE, said the year marked a positive phase for both farmers and the tractor industry. “We are now seeing a very encouraging trend in the penetration of mechanisation in rural areas. This year marks a meaningful shift in access to mechanisation for small farmers, with many first-time users entering the ecosystem,” she said, adding that this would improve farm productivity and strengthen incomes.
Steady momentum
Meanwhile, Escorts Kubota Ltd said the industry maintained steady momentum in March 2026, supported by ongoing rural demand and the gradual onset of rabi harvesting in several regions. Although recent rainfall caused slight delays in harvesting, the overall outlook remains positive, aided by above-normal reservoir levels.
Looking ahead, the company cautioned that geopolitical uncertainties could pose intermittent supply-side risks, particularly in the availability of key fertilisers, which may impact preparedness for the upcoming kharif season.
Industry experts highlighted policy support as a key catalyst. Poonam Upadhyay, Director at Crisil Ratings, said the GST rate cut to 5 per cent from 12 per cent significantly improved affordability, bringing in first-time buyers while also triggering replacement demand.
“This was supported by higher minimum support prices and strong cash flows from a healthy rabi harvest, keeping rural sentiment firm,” she noted, adding that favourable monsoon conditions, easier access to credit, and growing non-farm use of tractors further boosted demand.
Published on April 10, 2026