M&M sees green shoots in US tractor mkt as tariffs ease after trade talks

Mahindra & Mahindra expects improved competitiveness in the US as tariffs drop to 18 per cent, plans to supply inventory from bonded warehouses

Mahindra & Mahindra (M&M), India’s largest tractor maker, is hopeful of seeing early signs of recovery in the US market as trade talks between the two countries make progress.

 

Speaking to reporters after the company’s December quarter (Q3 FY26) results, Rajesh Jejurikar, executive director and chief executive officer (auto and farm sectors), said the past eight to nine months had been challenging for the US market due to steep tariffs. “We held back selling at a 50 per cent tariff and only sold what was absolutely needed in the market, while hoping for a resolution to the trade agreement issue, which has now happened,” he said.

 

Jejurikar said the company had inventory in bonded warehouses in the US, which it would begin supplying to the market after the issuance of an executive order.

 

“With the (US) tariff (on Indian imports) now at 18 per cent, we are reasonably competitive with other countries exporting tractors to the US. Earlier, most countries were at 15 per cent tariff while we were at 50 per cent, which made us uncompetitive and led to some volume loss,” he said.

 

M&M exported close to 17,000 tractors in the first 10 months of FY26. The company exports to nearly 50 countries across North and South America, Africa, Asia-Pacific, and Saarc nations, parts of Europe, and West Asia.

 

Veejay Nakra, president of M&M’s farm equipment business, told Business Standard that between April 2025 and January 2026, the company sold 16,861 tractors in overseas markets, marking a 24 per cent year-on-year growth and significantly outperforming overall industry exports. “This has been on account of a strong performance in South Asia and Africa. We continue to have a strong positive outlook around our exports business,” Nakra said.

 

Jejurikar said M&M’s OJA platform had received strong customer response. OJA is a range of lightweight, compact tractors in the 20-40 horsepower category, designed for small and medium-scale farming, including vineyard, orchard and inter-culture applications, owing to their narrow width and high manoeuvrability.

 

He added that while the North American tractor industry had been in a downturn for the past one-and-a-half to three years, Mahindra gained share in the sub-20 horsepower segment. “The OJA series has received very good feedback and we are close to 9-10 per cent market share in that segment. We have been the number three player in North America for a long time in the sub-100 horsepower segment,” Jejurikar said, adding that the stabilisation of trade conditions should help the company rebuild volumes and return to a growth phase.

 

On passenger vehicles, Jejurikar said the recent trade deal with the European Union would open up export opportunities over time. “We do not yet have many left-hand-drive models, but over the next couple of years, by 2028, several mainstream models will be available in left-hand drive, enabling a more robust EU strategy. Lifestyle pickup products launching in 2027 will also support exports,” he said.