The wholesale volumes reported a growth of 28.2% YoY in August 2025 and 11.7% YoY in 5M FY2026. Wholesale volumes are estimated to grow at a moderate pace of 4-7% in FY2026. 

The growth is likely to remain backed by above-normal monsoons, which is expected to support agricultural production.

• Tractor demand remained strong in August 2025: The tractor wholesale and retail volumes rose by 28.2% YoY and 30.1% YoY, respectively, in August 2025 on account of positive farmer sentiments and adequate monsoons. The recent GST rate cut on tractors to 5% is expected to support demand, particularly during the upcoming festive season.
• Favourable monsoon to support agricultural activities and industry volumes: With early onset of monsoon, the country has received above-normal rainfall at 108% of the long period average (LPA) till September 17, 2025. As of September 12, 2024, India's kharif sowing exceeded the normal sown area, driven by healthy precipitation across most regions of the country. The third Advance Estimates for kharif and rabi crop for AY2024-25* indicate a YoY increase of 7.9% and 4.5%, respectively, in the foodgrain output over the final estimates for AY2023-24.

Monthly wholesale tractor volumes (domestic)

Source: TMA, Vahan, Tractor Junction, ICRA Research; *AIF: Agriculture Infrastructure Fund