India’s tractor industry recorded modest growth of 3.1 per cent in October 2026, with total retail sales rising to 79,285 units from 76,898 in the same month last year, according to data from the Federation of Automobile Dealers Associations (FADA). This is due to steady rural demand.
Industry sources say there is also a strong demand for tractors from non-agricultural industries like road construction and mining, where tractors are used on a large scale, thus leading to an increase in volume.
FADA data shows that Mahindra & Mahindra retained its leadership position, selling 18,263 tractors, up 7.6 per cent from 16,967 units in October 2025. Its market share increased to 23.03 per cent from 22.06 per cent, strengthening its position as the country’s largest tractor manufacturer.
The top five manufacturers, including International Tractors Ltd, TAFE Ltd and Escorts Kubota Ltd (Agri Machinery Group), together accounted for 76.2 per cent of the total tractor market in October, according to the data.
The tractor industry saw some moderation in October 2026, driven by a high base, a shift in festival timing, and monsoon-related disruptions. Elevated input costs arising from geopolitical developments and consequent pricing actions may moderate demand in the near term, says a business update by Escorts Kubota Ltd Agri Machinery Business.
Bharani, a farmer in Mayiladurai in coastal Tamil Nadu, says demand for tractors is declining among farmers, as it is better to outsource vehicles when needed than to own them. The return on income is very low and the EMI is very high, he said.
Tractor retail sales remained positive in October, supported by festival-season demand. However, the growth is not yet indicative of a broad-based improvement in underlying demand. The industry continues to face uncertainties on the agricultural front, with a deficient monsoon raising concerns around soil moisture, reservoir levels and potential crop yields. The implications for farm incomes will become clearer as kharif harvest progresses, said Poonam Upadhyay, Director, Crisil Ratings.
Festive demand should provide some support through November, but the more important indicator will be how demand evolves thereafter. Rabi sowing, reservoir replenishment and crop realisations will be critical in determining farmers’ purchasing power, she said.
Published on November 12, 2026
