The wholesale volumes reported a strong growth of 15% YoY in October 2025 and 17.9% YoY in 7M 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 likely to support agricultural output and rural income, along with the GST reduction, which is likely to aid demand levels.

• Tractor demand remained strong in October 2025: Tractor wholesale volumes rose by 15% YoY, while retail volumes increased by 14% YoY in October 2025, with demand levels supported by positive rural sentiment, improved crop realisation, and sustained demand during the festive season across all major manufacturers.
• Favourable monsoon supports agricultural activities and industry volumes: India received above-normal rainfall at 108% of the long-period average (LPA) in the 2025 Southwest Monsoon season, albeit with an uneven spatial distribution. The final Estimates for AY2024-25*, released by MA&FW^ on November 21, 2025, indicate a YoY increase of 8.8% for kharif and 6.7% for rabi crops in foodgrain output, thus supporting the agri-economy and demand for tractors.