India Tractor Sales Growth Forecast: Good Monsoon Impact

Mentioning IMD (India Meteorological Department) projection of an above-normal precipitation at 105 per cent of the long period average (LPA) throughout the existing monsoon period as per first long-range forecast, ICRA stated, favourable monsoon and increased crop production will certainly sustain market quantities.

Tractor Sales Outlook 2025-26

Tractor sales in India are most likely to see a modest growth of 4-7 percent in 2025-26 on the back of a good monsoon forecast, which is expected to sustain agricultural production, rankings company ICRA said on Wednesday.

It, nevertheless, mentioned that commodity prices are anticipated to see an uptick in FY26 because of the imposition of 12 per cent tariffs on some steel imports from April 2025 coupled with a rise in domestic steel demand.

Factors Influencing Tractor Demand

In May 2025, tractor wholesale and retail volumes increased by 9.1 percent YoY and 2.8 percent YoY, respectively. The demand stays sustained by favorable farm beliefs on the back of very early downpour arrival and prompt beginning of kharif sowing, ICRA kept in mind.

“The industry wholesale volumes expanded at 7 per cent in FY2025, aided by constant need amid appropriate rainfall. In FY2026, the industry is expected to report a growth of 4-7 per cent sustained by a favourable monsoon projection,” it claimed.

“Better, the third development estimates, launched in May 2025, suggest a YoY boost of 7.9 per cent in kharif crop result. Rabi crop sowing likewise marked a YoY increase of 1.5 percent, which gives positive outlook regarding improved agri-output and farm revenue,” the scores firm stated.