India Tractor Sales Cross 10 Lakh Units for First Time, Mahindra Dominates and Escorts Kubota Surges

India's tractor market has crossed the 10-lakh unit mark for the first time, with retail sales reaching 10,50,077 units in FY2025-26 which is an 18.95 per cent rise from the 8,82,825 units sold in FY25. The segment emerged as the fastest-growing vehicle category tracked by FADA, outpacing both two-wheelers and passenger vehicles (PVs).

March 2026 closed the year on a steady note with 82,080 units, up 10.87 per cent year-on-year. The monthly figure was unremarkable in isolation, but it reinforced the broader picture: this was not a last-minute surge but a sustained full-year performance, built on a strong south-west monsoon, a robust rabi sowing season and improving farm incomes.

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The outlook for FY27 will hinge largely on the monsoon, according to FADA. If rainfall delivers a third consecutive normal-to-good season, the segment could sustain double-digit growth and potentially push towards 11.5 lakh units.

Mahindra's Grip

The competitive landscape remains firmly in the hands of one group. Mahindra & Mahindra's tractor operations, spanning the Mahindra and Swaraj brands, retailed a combined 4,46,948 units in FY26, giving the group a 42.57 per cent share of the market. The Mahindra tractor brand alone accounted for 23.81 per cent (2,49,973 units), while Swaraj contributed 18.76 per cent (1,96,975 units). Both divisions edged up their share marginally on the previous year.

To put the scale in context, the combined Mahindra tractor franchise at 4.47 lakh units is not far behind Hyundai's domestic passenger vehicle volumes of 5.85 lakh.

The Rivals

International Tractors Limited, which sells under the Sonalika brand, held third place with a 12.76 per cent share (1,34,030 units), down slightly from 13.04 per cent in FY25. TAFE edged up to 11.27 per cent (1,18,326 units) from 11.24 per cent.

The standout mover among the top five was Escorts Kubota, which climbed from 9.93 per cent to 10.90 per cent share on the back of 1,14,468 units and volume growth of 30.6 per cent. The performance points to the Kubota partnership beginning to bear fruit domestically, with technology transfers, upgraded products and a broader dealer network all contributing to the acceleration.

John Deere held steady at 7.63 per cent (80,086 units), Eicher Tractors slipped marginally to 6.21 per cent (65,215 units), and CNH Industrial gained ground at 4.49 per cent (47,122 units, up from 4.05 per cent), another indicator that global tractor tie-ups are reshaping the competitive order.

In March alone, the share breakdown was broadly consistent with full-year trends: Mahindra at 23.94 per cent, Swaraj at 19.50 per cent, Sonalika at 12.42 per cent, Escorts Kubota at 10.87 per cent and TAFE at 10.34 per cent.

The 10-lakh breakthrough was underpinned by a near-ideal set of agricultural conditions. The 2025 south-west monsoon was among the best in several years, with cumulative rainfall marginally above the long-period average. That fed into strong kharif crop output, healthy reservoir levels heading into the rabi season and improving rural cash flows from October onwards, the period when tractor demand traditionally peaks.

The rabi season proved equally strong, with acreage for wheat, mustard and pulses all expanding. Government minimum support price increases, direct benefit transfers and better terms of trade for farming collectively created conditions in which farm incomes were rising and buyer confidence was high.

The rural-urban split in tractor demand remained stable: 81 per cent of retail in FY26 came from rural areas, virtually unchanged from 81.5 per cent in FY25. Urban tractor demand, which includes peri-urban construction and haulage uses, grew at a faster clip of 22.37 per cent compared with rural growth of 18.17 per cent, pointing to an expanding base of non-agricultural applications.

India's farm mechanisation rate stands at roughly 47 per cent, well short of the 90 per cent-plus levels seen in developed markets. The 10-lakh milestone, while historic, reflects a market that still has considerable headroom. 

The average Indian farm holding of 1.08 hectares, too small for most tractors which means demand is concentrated among medium and large farmers, custom hiring centres and institutional buyers. As farm consolidation continues and custom hiring models spread, the addressable market is expected to keep widening.