Domestic tractor sales grew sharply by 34 per cent year-on-year in February 2026, while exports rose by 7 per cent, according to data released by the Tractor and Mechanization Association of India (TMA).
The industry recorded domestic sales of 78,901 units in February 2026, compared with 58,797 units in February 2025. Export shipments increased to 9,644 units from 8,954 units during the same period.
Industry players attribute the growth to strong rural sentiment and improved farm economics. A robust rabi sowing area, healthy reservoir levels, and a favourable kharif harvest have strengthened cash flows in rural markets. Positive sentiment in rural areas, coupled with Navratri-related seasonal demand, is expected to further support tractor sales in the coming months.
Poonam Upadhyay, Director at Crisil Ratings, said that the demand surge continues to be supported by the GST rate cut implemented last September, which improved affordability and triggered purchases from both first-time buyers and replacement demand.
However, with domestic sales already running at a high base, sequential normalisation is visible, with volumes declining 10–11 per cent month-on-month, which is typical for the season, she said. “Overall demand momentum is expected to remain steady, though on a very high base. The emerging El Niño probability will also be a factor to watch,” she added.
Published on March 13, 2026