India's Tractor Industry Set to Hit 10 Lakh Sales in FY26 Amid Strong Monsoon, Rural Growth, and Rising MSP

Key Highlights:

• FY26 may see record tractor sales crossing 10 lakh units.

• April 2025 sales up 8% with 83,000 units sold.

• A good monsoon forecast and high reservoir levels boost demand.

• Mahindra, Escorts, and TAFE expect strong growth this year.

• Rising mechanisation and easy finance are aiding rural sales.

India’s tractor industry is heading towards a historic achievement in the financial year 2025-26. For the first time, tractor sales may cross the 10 lakh unit mark, thanks to positive developments such as a good monsoon forecast, higher minimum support prices (MSP), and increased government investment in rural areas.

In the past, FY23 had set a record with 9.45 lakh tractors sold, while sales in FY24 stood at 8.67 lakh. However, FY25 closed on a stronger note, reaching 9.39 lakh units, bringing the industry close to its all-time high once again.

Experts and companies believe that tractor sales are a strong reflection of the rural economy, and this year could mark a major milestone.

Also Read: Domestic Tractor Sales Report April 2025: 8.05% Growth with 83,131 Units Sold

FY26 Begins with Strong Momentum

The new financial year has started on a high note. According to industry data, April 2025 recorded an 8% growth in tractor sales, with around 83,000 units sold. This strong performance indicates growing confidence in the rural market.

Meanwhile, reservoir levels are 15.9% above normal, as per the Central Water Commission (CWC). Currently, India’s 161 major reservoirs hold 57.974 billion cubic meters of water, which is expected to support a good Kharif crop season.

Mahindra Reports Positive Trends

Mahindra & Mahindra, which holds a 43.3% share in the tractor market, is optimistic about the year ahead. Vijay Nakra, head of the agricultural equipment division, said that a normal southwest monsoon forecast is boosting farmers confidence. He also mentioned strong water levels in reservoirs and a successful Rabi crop as positive indicators.

Escorts Kubota Expects Record-Breaking Year

Bharat Madan, Whole Time Director at Escorts Kubota, also expressed high expectations from FY26. He noted that after last year’s good monsoon, the market began to recover, and double-digit growth was seen in the March quarter.

This year again, the Indian Meteorological Department has forecast a better-than-normal monsoon between June and September, which is likely to benefit agriculture and related industries. Additionally, a 50 basis point cut in interest rates has made financing easier for farmers.

TAFE Aims for 5–10% Growth in Q1

Tractor and Farm Equipment Limited (TAFE) is also hopeful. CEO Sandeep Sinha​ shared that the company expects a 5–10% growth in the first quarter of FY26. He said that the monsoon's timing and intensity will play a major role in the sales trend over the next few months. TAFE believes the tractor industry plays an important role in India's agricultural development.

Growing Mechanisation Driving Tractor Demand

According to a senior industry official, another key reason behind the growing demand is increased mechanisation in agriculture. Labour in rural areas has become more expensive and less efficient, pushing farmers to rely more on machines. Tractors allow farmers to work even during the night, improving productivity and efficiency.

Also Read: Special Government Scheme for Farmers: ₹13,800 Pension Every Year

CMV360 Says

With strong support from natural conditions, government policies, and changing agricultural practices, FY26 could become a landmark year for the Indian tractor industry. If all goes well, the country may witness tractor sales crossing the 10 lakh mark for the first time, setting a new benchmark in rural economic growth.