India’s tractor retail sales rose 13.7 per cent year-on-year in September 2026 to 76,906 units from 67,612 units a year earlier with the relatively lower base of September 2025 given the implementation of GST 2.0, according to data from the Federation of Automobile Dealers Associations (FADA).

Tractor sales in September 2026, however, declined 12.6 per cent month-on-month amid a late festive calendar and patchy monsoon conditions.

Mahindra & Mahindra (M&M) and its Swaraj division together accounting for nearly 42 per cent of the market, as per FADA data.

Most key manufacturers reported YoY growth in September with International Tractors Ltdreported the highest growth with 27.1 per cent.

The year-on-year growth in September needs to be interpreted with caution, as last year’s base was influenced by buyers postponing purchases ahead of the GST rate reduction, Poonam Upadhyay, Director, Crisil Ratings, said.

“The September [MoM] dip in tractor retail sales appears more a matter of timing than shift in underlying demand. Unlike most automobile segments, over 80 per cent of tractor sales are linked to rural markets, where purchase decisions are often aligned with auspicious periods and harvest-linked cash flows,” she said. With the festive season shifting into October this year, part of September demand appears to have been deferred, she added.

Escorts Kubota Limited Agri Machinery Business said that looking ahead, festive demand, crop harvesting and improving rural liquidity are expected to support industry volumes. However, the high base effect may continue to moderate industry growth in the near term.

Published on October 16, 2026