165 STATUTORY REPORTS | Management Discussion and Analysis Tractor Industry From FY09 to FY26, the domestic tractor industry grew at an 8.2% CAGR, driven by improving affordability, adoption of modern farming technologies, favourable monsoons, and sustained Government support. Growth was further supported by increased cultivation of high-value crops, higher Minimum Support Prices (‘MSPs’), labour shortages that improved the viability of mechanisation, and strong domestic demand alongside rising agri exports. Looking ahead, the long-term outlook for the Indian tractor industry remains positive. Tractor Industry in FY26 The Indian tractor industry clocked an annual sale of 11,60,231 units in FY26, an increase of 23.5% as compared to FY25. The industry was supported by timely arrival of the south-west monsoon and healthy reservoir levels which created a positive momentum during the year. Following the GST reduction on tractors implemented in September 2025, the industry witnessed a sharp acceleration in growth. While growth stood at 11.6% from April to August, it further surged to 31.2% during the September to March period. Industry Segment Passenger Cars Utility Vehicles MPV (Vans) Passenger Vehicles MHCV MHCV Passenger MHCV Goods ICV Goods (7.5 to 12T) MCV Goods (12 to 18.5T) HCV Goods >18.5T LCV LCV Passenger LCV Goods < 2T GVW LCV Goods 2-3.5T GVW LCV Goods > 3.5T GVW Total CV 3W Passenger 3W Goods 3W-e-Rickshaw 3W-e-Cart 3W Scooters Motorcycles Mopeds 2W Quadricycle Total Domestic Total Domestic (Excl. 2W) Domestic Industry Volume FY24 15,48,947 25,20,691 1,49,112 42,18,750 3,74,274 54,030 3,20,244 37,667 62,705 2,19,872 5,94,758 51,750 1,76,310 3,19,114 47,584 9,69,032 5,48,090 1,11,519 31,290 3,902 6,94,801 58,39,325 1,16,53,237 4,81,803 1,79,74,365 725 2,38,57,673 58,83,308 FY25 13,53,287 27,97,229 1,51,332 43,01,848 3,74,798 67,307 3,07,491 40,160 67,134 2,00,197 5,83,881 54,807 1,55,927 3,11,725 61,422 9,58,679 6,01,642 1,17,156 18,474 4,148 7,41,420 68,53,214 1,22,52,305 5,01,813 1,96,07,332 120 2,56,09,399 60,02,067 FY26 13,78,771 31,05,025 1,59,643 46,43,439 4,22,998 67,149 3,55,849 54,639 76,193 2,25,017 6,56,873 61,597 1,62,436 3,48,965 83,875 10,79,871 6,88,477 1,29,288 13,009 5,457 8,36,231 81,17,945 1,30,64,789 5,23,240 2,17,05,974 4 2,82,65,519 65,59,545 FY24 -11.4% 25.8% 7.3% 8.4% 4.2% 40.7% -0.1% 6.7% -8.0% 1.2% -1.4% 16.8% -8.6% -3.8% 37.9% 0.7% 51.8% 14.3% 17.4% 12.1% 42.2% 12.5% 13.9% 9.1% 13.3% 0.0% 12.5% 10.1% FY25 -12.6% 11.0% 1.5% 2.0% 0.1% 24.6% -4.0% 6.6% 7.1% -8.9% -1.8% 5.9% -11.6% -2.3% 29.1% -1.1% 9.8% 5.1% -41.0% 6.3% 6.7% 17.4% 5.1% 4.2% 9.1% -83.4% 7.3% 2.0% FY26 1.9% 11.0% 5.5% 7.9% 12.9% -0.2% 15.7% 36.1% 13.5% 12.4% 12.5% 12.4% 4.2% 11.9% 36.6% 12.6% 14.4% 10.4% -29.6% 31.6% 12.8% 18.5% 6.6% 4.3% 10.7% -96.7% 10.4% 9.3% YoY Growth
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