The industry has seen sustained growth through the year, with monthly sales rising from 88,522 units in January to 1,03,193 units in March, and further to 1,05,021 units in April before touching 1,08,229 units in May. | Photo Credit: GIRI KVS

India’s tractor industry continued its strong growth trajectory in 2026, with domestic sales crossing the one-lakh-unit mark for the third consecutive month in May, supported by favourable rural sentiment, improved farm economics even as monsoon progression remains a key variable to watch for.

According to data from the Tractor and Mechanization Association (TMA), domestic tractor sales stood at 1,08,229 units in May 2026, up 20 per cent from 90,500 units in the corresponding month last year.

The industry has seen sustained growth through the year, with monthly sales rising from 88,522 units in January to 1,03,193 units in March, and further to 1,05,021 units in April before touching 1,08,229 units in May.

Exports recover

Exports also showed signs of recovery, crossing the 10,000-unit mark for the first time this year. Tractor exports rose to 10,165 units in May, the highest since March 2025, when overseas shipments stood at 10,733 units. Prior to that, exports had exceeded the 10,000-unit threshold in March 2024, at 10,794 units, according to TMA data.

“A 20 per cent year-on-year growth, supported by the GST reduction on tractors, which continues to improve rural affordability, reflects a healthy demand environment. The fact that absolute volumes have remained above the one-lakh mark for three consecutive months reinforces that trend,” said Poonam Upadhyay, Director, Crisil Ratings.

She noted that while the pace of month-on-month growth has moderated, sales continue to expand despite a higher base.

“The GST rate cut came into effect in late September 2025. Consequently, year-ago volumes from that period onwards already incorporate the affordability benefit, making second-half comparisons progressively less favourable. Monsoon progression and its impact on farm incomes remain the key variables to watch through the rest of FY27,” she added.

Kubota Limited in its monthly bulletin on tractor sales for May said that growth momentum continued in May 2026, with healthy performance across wholesale and retail segments. Near-term headwinds include rising input costs, particularly fertilizers, softer prices for select cash crops, and evolving geopolitical developments, which could affect customer affordability and input availability ahead of the Kharif season, the company said.

Published on June 14, 2026