CNH India reports 42% H1 tractor sales growth, plans a new Greater Noida plant and 25-30 HP compact tractor to expand market share.
By Robin Kumar Attri
H1 sales rose 42% to 30,248 tractors
Exports increased 20% to 6,666 units
New plant planned near Greater Noida
25–30 HP compact tractor coming in 2028
CNH targets double-digit market share
CNH India has reported strong tractor sales growth in the first half of calendar year 2026, with domestic sales rising 42% year-on-year to 30,248 units. The company also achieved its highest-ever market share in India during the period.
CNH India operates the New Holland and Case IH tractor brands in the country. Speaking to PTI, CNH India President and Managing Director Narinder Mittal said the company’s growth was significantly higher than the overall Indian tractor market.
The domestic tractor industry grew by around 25% during H1 2026, while CNH India recorded a 42% increase in sales.
CNH India sold 30,248 tractors in the domestic market during the first six months of 2026, compared with the same period last year. The 42% growth helped the company achieve its highest-ever market share in India.
The company attributed the strong performance to several factors, including its technology-focused tractor range, expanding dealer network and support from CNH Capital.
CNH India also benefited from favourable market conditions during the first quarter. A reduction in the Goods and Services Tax (GST), along with good monsoon conditions, helped support tractor demand.
However, the company expects some pressure on the tractor market during the second half of 2026 as market sentiment has weakened. While industry sales could decline in H2, Mittal expects overall tractor demand for the full calendar year to remain good.
The company also recorded healthy growth in its export business during the first half of 2026.
CNH India exported 6,666 tractors in the first six months of the year, marking around 20% growth compared with the previous year.
Exports faced some disruption earlier in the year because of US tariffs. According to Mittal, shipments have now resumed as the tariff situation has eased.
The US contributes around 30% of CNH India's total export mix. The company does not currently plan to move away from its existing export markets. Demand in the US, Europe and other global markets remains broadly stable, although product demand differs across individual regions.
Along with strong sales growth, CNH India is preparing for a major expansion of its manufacturing capacity.
The company plans to establish its fourth manufacturing facility near its existing Greater Noida plant. CNH India has received 100 acres from the Yamuna Expressway Authority for the proposed facility.
The new plant will be located close to the company's existing factory and will manufacture tractors for both the Indian and export markets.
The facility is expected to be commissioned in early 2028.
Once operational, the new plant is expected to almost double CNH India's annual tractor production capacity in India to around 1.20 lakh units, compared with the company's current capacity of around 70,000 units.
For comparison, CNH India's existing plant produced around 59,000 tractors in 2025.
The capacity expansion will give the company greater flexibility to meet rising domestic demand as well as export requirements.
CNH India is also planning to expand its product portfolio with a new compact tractor.
The company plans to launch a 25–30 HP compact tractor in the second half of 2028. The model will be offered in India as well as international markets, including the US and Europe.
The upcoming tractor will help CNH India strengthen its presence in the lower-horsepower segment, where demand for compact tractors is increasing.
The move is also part of the company's broader strategy to expand beyond its traditional focus on higher-horsepower tractors.
CNH India's current market share in India is around 4.5%, while Mahindra & Mahindra continues to be the market leader.
According to Mittal, CNH India's earlier product strategy was largely focused on higher-horsepower tractors, particularly models in the 45–50 HP and above category.
The company has now started expanding into lower-horsepower segments through its compact and Smart series tractors.
With a wider product portfolio and an expanding dealer network, CNH India expects to increase its presence in the Indian tractor market.
Mittal said the company is confident of achieving double-digit market share within five to six years. The strategy will focus on offering a wider range of tractors and technology suited to the requirements of Indian farmers.
India continues to have an important role in CNH's global business strategy.
The company's India operations are focused on four major areas:
Domestic sales of tractors and farm equipment
Exports of tractors and agricultural equipment
The India Technology Center in Gurgaon
Sourcing components from Indian suppliers for CNH's global manufacturing plants
CNH India also exports components such as power take-offs (PTOs) and axles from India to international markets.
This makes India important not only as a domestic sales market but also as a manufacturing, technology and global sourcing base for CNH.
CNH India also sees significant opportunities from the continued growth of farm mechanisation in the country.
The Indian tractor market is gradually shifting towards the 45 HP and above segment, and this trend is expected to continue. At the same time, farmers using lower-horsepower tractors are increasingly looking for technology that provides clear value for their farming operations.
According to Mittal, several agricultural activities in India still have very low levels of mechanisation.
For example, mechanisation in sugarcane is around 4%, while biomass and baling mechanisation is around 2%. Cotton picking also remains almost completely unmechanised.
CNH believes there is considerable scope to improve mechanisation in these areas. The company believes the industry and government will need to work together to encourage greater adoption of farm machinery and suitable agricultural equipment.
Another major factor influencing India's farm mechanisation opportunity is the size of agricultural landholdings.
Average Indian landholdings are close to one hectare or smaller, making it difficult for every farmer to depend solely on tractor ownership for mechanisation.
Mittal said the focus should therefore not be limited to increasing tractor ownership. Instead, farmers also need access to suitable farm equipment that can improve mechanisation and productivity across different farming activities.
This creates opportunities for manufacturers such as CNH India to offer a broader portfolio of tractors and specialised agricultural machinery.
CNH India's 42% domestic tractor sales growth in H1 2026 significantly outpaced the approximately 25% growth recorded by the overall Indian tractor industry.
The company's plans for a new manufacturing plant near Greater Noida, along with the upcoming 25–30 HP compact tractor, indicate a stronger focus on expanding its presence across different tractor segments.
The new facility, expected to start operations in early 2028, could raise CNH India's annual production capacity in India to around 1.20 lakh tractors. At the same time, the company's expanding product range and dealer network could help it reach more farmers and strengthen its market position.
With India becoming increasingly important for domestic sales, exports, technology development and global component sourcing, CNH India is positioning itself for long-term growth in the country's tractor and farm mechanisation market.
CNH India’s strong 42% sales growth in H1 2026 highlights rising demand for its tractors in India. With a new manufacturing plant planned near Greater Noida, a 25–30 HP compact tractor in development and wider farm equipment offerings, the company aims to expand its market share. Its focus on exports, technology, mechanisation and lower-horsepower tractors could support long-term growth in India’s evolving agricultural machinery market.
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