The wholesale volumes reported a growth of around 11.7% in 5M-FY2026. Wholesale volumes are estimated to grow at a moderate pace of 4-7% in FY2026. The growth is likely to remain supported by above-normal monsoons, which is expected to shore up agricultural production.

• Tractor demand remained strong in YTD FY2026: Industry wholesale and retail volumes grew by 11.7% YoY and 11.9% YoY, respectively, in 5M FY2026, owing to positive farmer sentiments and adequate monsoons. Going forward, the recent GST rate cut on tractors to 5% is expected to support demand, particularly during the upcoming festive season. Pre-buying ahead of the TREM V emission norms, proposed to take effect from April 1, 2026, could further aid volume growth
•  Favourable monsoon to support agricultural activities and industry volumes: With the early onset of monsoon, India received above-normal rainfall at 108% of the long-period average (LPA) until September 17, 2025, albeit with an uneven spatial distribution