India tractor industry records strong February growth in 2026

India’s tractor industry delivered strong double-digit growth in February 2026, with total sales rising 31% year-on-year to 88,545 units. The performance was supported by strong agricultural fundamentals, improved rural cash flow, and continued policy support for farm mechanisation.

According to data from the Tractor and Mechanization Association, domestic demand remained the key driver, while exports showed steady but slower growth. On a month-on-month basis, the industry saw a slight dip after the seasonal peak in January.

India tractor sales rise on strong rural fundamentals

India tractor sales in February 2026 were boosted by favourable agricultural conditions, including healthy reservoir levels, improved rabi sowing, and expectations of a strong kharif cycle. These factors helped strengthen rural income and boost farmer purchasing power.

Domestic tractor sales rose 34% year-on-year to 78,901 units compared with 58,797 units in February last year. Export volumes increased 8% to 9,644 units from 8,954 units, reflecting stable international demand.

However, total industry volumes declined 9% month-on-month from 97,724 units in January 2026 due to moderation after festive-season demand.

India tractor sales led by major manufacturers

India tractor sales growth in February 2026 was supported by strong performance from leading manufacturers across the sector.

Mahindra & Mahindra Ltd. reported a 35% year-on-year rise in domestic tractor sales through its Farm Equipment Business, reaching 32,153 units. Total tractor sales including exports rose 34% to 34,133 units.

Escorts Kubota Ltd. recorded sales of 10,339 tractors, marking a 20.4% year-on-year increase. Domestic sales formed the majority of volumes, while exports saw a slight decline.

Sonalika Tractors achieved its highest-ever February sales at 12,890 units, reflecting strong demand across varied farming markets. VST Tillers Tractors delivered the fastest growth among peers, with sales rising 53.2% year-on-year to 472 units.

Policy support strengthens India tractor demand

India tractor sales growth has been strongly supported by rural policy measures, improved credit access, and rising government investment in rural infrastructure. These factors have contributed to stronger farmer sentiment and higher demand for agricultural equipment.

Favourable monsoon conditions in 2025 and expansion in the rabi sowing area have also supported rural incomes. Improved crop output expectations and better price realisations have further strengthened purchasing power in farming regions.

Industry experts note that tractor demand remains highly dependent on seasonal factors such as monsoon performance, procurement policies, and agricultural output cycles.