The wholesale volumes reported a strong growth of 30.1% YoY in November 2025 and 19.2% YoY in 8M FY2026. ICRA has revised its wholesale volume growth outlook for the tractor industry to 15-17% for FY2026, up from 8-10% earlier. The same is driven by the improvement in demand post GST rate cuts (reflected in strong October-November volumes), healthy farm cash flows and pre-buying ahead of upcoming emission norm transition.

• Tractor demand remained strong in November 2025: The tractor wholesale volumes grew 30.1% YoY, while retail volumes increased by 56.5% YoY in November 2025.
  
• Favourable monsoon supports agricultural activities and industry volumes: India received above-normal rainfall at 108% of the long-period average during the 2025 Southwest Monsoon, though distribution was uneven.
  

Source: Vahan, Tractor Junction, ICRA Research