The wholesale volumes reported a strong growth of 45.0% YoY in September 2025 and 18.8% YoY in H1 FY2026. ICRA has revised its wholesale volume growth outlook for the tractor industry to 8-10% for FY2026, up from the earlier estimate of 4-7%. This is driven by the above-normal monsoons that is expected to boost agricultural output, along with the GST reduction implemented in September, which is likely to support demand levels.

Monthly wholesale tractor volumes (domestic)

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