Tractor sales reach record July high on better monsoon

India’s tractor market recorded strong growth in July 2026, with retail sales rising 28 per cent year-on-year to 1,17,349 units from 91,604 units in July 2025, according to data from the Federation of Automobile Dealers Associations (FADA), the apex national body of the automobile retail industry.

The July volume was a record for the month, with rural tractor demand benefiting from the catch-up in kharif sowing and improving monsoon conditions, FADA said.

All tractor manufacturers reported growth in July. Mahindra & Mahindra (Tractor) remained the market leader, followed by its Swaraj division in second place and International Tractors Ltd in third.

Chennai-based TAFE, which reported the highest growth in July, and Escorts Kubota completed the top five, reported The Business Line.

Veejay Nakra, President – Farm Equipment Business, Mahindra & Mahindra Ltd in the company’s monthly business update on tractor said significant recovery in rainfall, improved reservoir levels, accelerated kharif sowing aided by Government support and healthy farm cashflows has led to positive rural & farmer sentiment.

Escorts Kubota Limited (Agri Machinery Business), in its monthly update, said improved rainfall during the month of July reduced cumulative rainfall deficit to 14-15 per cent and Kharif sowing activity picked up pace thereby supporting rural demand and sentiments.

“Overall rural fundamentals remain resilient; however, Kharif crop and monsoon progression, delayed festive season in Q3, input cost pressures, and the high base effect in the coming months remain key factors to monitor,” the company said.

Retail tractor volumes grew 28 per cent year on year and 12 per cent over June, taking the four month FY27 tally to 25 per cent, among the strongest starts the segment has seen in recent years, reported The Business Line.

Part of this reflects a favourable base, since July last year had actually seen a decline, flattering the comparison somewhat. Monsoon progress has helped too, From Poonam Upadhyay, Director, Crisil Ratings.

After a slow start in June, rainfall picked up and July saw fairly adequate distribution barring a few pockets, allowing kharif sowing to catch up and keeping farmer sentiment and dealership footfalls healthy, she said.

The momentum still needs to be read with caution. The IMD has forecast below normal rainfall for August and September, with a strengthening El Nino adding to the uncertainty.

Sowing may be largely done, but the crop still needs adequate moisture through the grain filling stage, and any shortfall could weigh on farm incomes and delay purchase decisions in the second half, she added.