Tractor sales likely to hit record high in FY26 on monsoon, MSP hike

Pre-buying ahead of TREM V norms, rising construction activity to fuel demand; margins remain stable

Expected above-normal monsoon, increased minimum support prices (MSPs) for key crops, and rising replacement and construction demand are likely to drive domestic tractor sales to a record high of approximately 9,75,000 units in the financial year 2025-26 (FY26), marking a 3-5 per cent year-on-year growth.

 

In FY25, tractor sales had dipped by 1.04 per cent.

 

Sales for that year had come in at 8,83,095 units, down from 8,92,410 units in FY24, according to data from the Federation of Automobile Dealers Associations (FADA).

 

Good times ahead

 

But the ongoing financial year is expected to bring good news.

 

A recent analysis by