Tractor Industry

The government can ensure trade accountability by making it mandatory for dealers to display MRPs for all models along with prices under GST 1 (12-18 per cent) and GST 2 (5 per cent)

CNH has paused exports of India-made tractors to the US amid high tariffs and weak demand but continues to invest in India, scouting land for a new plant and expanding capacity

Tractor industry volumes are expected to grow in the range of 4-7 per cent in the current fiscal, backed by a favourable monsoon, rating agency Icra said on Monday. Following a growth of 7 per cent in FY2025, tractor industry volumes are expected to report a growth of 4-7 per cent in FY26, supported by a favourable monsoon, it said in a statement. Pre-buying ahead of the TREM V emission norms, proposed to take effect from April 1, 2026, could further aid volume growth, it added. The tractor demand remained strong in July 2025, with wholesale and retail volumes rising by 8 per cent and 11 per cent year-on-year (YoY), respectively. According to ICRA, a favourable monsoon is expected to further support agricultural activities and industry volumes. The India Meteorological Department (IMD) has forecast above-normal precipitation at 106 per cent of the long-period average (LPA) during the current monsoons, as per its second long-range forecast. Additionally, the third Advance Estimate

The company said the favorable and well distributed rainfall has provided a strong momentum to agricultural operations.

While near-term sentiment remains positive, industry watchers remain cautious about upcoming monsoon trends and rural liquidity-both critical for sustaining demand in the remaining quarters

According to analysts at Nuvama, the tractor industry volumes are expected to grow in double digits, with an approximately 16 per cent Y-o-Y increase in the domestic market

The M&M share price has jumped about 4.36 per cent in 2 days, including today's gain, on the back of strong Q3 results and outlook

M&M is expected to report strong performance for Q3FY25, driven by solid growth across its automotive and tractor segments

Nuvama analysts said December is expected to bring encouraging results for the industry. PVs are predicted to achieve double-digit growth, propelled by strong performances from M&M, Maruti & Toyota

The first half of the current financial has been flat in terms of wholesales - 472,079 units sold against 469,383 in H1FY24

Tractor sales in the festive months, spanning from September to November, are expected to grow 8-10 per cent this year on the back of good monsoon lifting market sentiments, according to farm and construction equipment firm Escorts Kubota Ltd whole-time director and CFO Bharat Madan. After a soft first half, the tractor industry is expected to gain momentum in the second half of the ongoing fiscal, growing in double digits, leading to an overall mid-single digit growth for the full year, he told PTI. "If you look at (festive) season months, which we normally count as September to November, we expect there'll be a growth of 8 to 10 per cent this year over last year's season months," Madan said. He was responding to a query on how tractor sales in the industry fared during the festive season. The festive season months account for about 40-45 per cent of the industry sales, he said, adding that this year, "in terms of volume, the industry will be somewhere around 3,25,000 tractors" fo

Tafe and AGCO have been allies for 64 years. Tafe is the single largest shareholder in AGCO and AGCO holds nearly 21% in Tafe

A normal monsoon, as predicted by the India Meteorological Department (IMD), is likely to boost farmers' income which may drive up tractor demand, analysts said

The market leader in tractors in India, Mahindra and Mahindra, felt that the year would end with around 900,000 units in sales compared to 945,000 units sold in 2022-23

Italian-American off-road construction and agriculture firm CNH is planning to invest up to USD 50 million in the farm machinery segment in India this year and launch a 105HP tractor in May, according to a top CNH India official. CNH, which produces and sells farm machinery and equipment under the New Holland brand, will focus on the compact range of tractors of below 30-40 horsepower (HP), besides targeting to sell 1,000 baler machines (used for managing stubble) this year. Currently, CNH India has a four per cent market share in the tractor business in India and has a considerable presence in the 45-50 HP range of tractors. Speaking to PTI, CNH India and SAARC Country Manager and Managing Director Narinder Mittal said there is a huge potential in India's agriculture sector, and the company intends to double its market share to 8 per cent in the next four years. "We plan to invest about USD 40-50 million in the current calendar year in the agriculture segment, including the progra

The company registered a rise in its YTD sales data until November 2023, which stood at 22,875 units, 6.9% more when compared to 21,393 units sold during the same period last year

Rating agency ICRA pointed out that the domestic tractor industry volumes remained healthy and represented a 12 percent YoY growth in FY2023, touching an all-time high of 9.45 lakh units

Likely El Niño may water down sentiment but industry does not see huge downside in sales in FY24

However, softening prices of inputs such as steel and pig iron will provide a 100-200 basis points (bps) respite to the operating margin of tractor makers

SUV launches getting traction, weak rural demand a headwind for tractors