CONNECT WITH US
EV & Mobility

EV & Mobility

Tractor demand drying to likely 3-year low at arid farms

ET Auto – Electric Mobility logo

Published on

Add as a preferred source on Google
Tractor demand drying to likely 3-year low at arid farms

Tractor sales were up 8% to 610,000 units in the first half of the current year from a year-ago period, according to Tractor and Mechanisation Association. The pressure is also visible in entry-level motorcycles and cars, which have a large rural market.

Tractor sales were up 8 per cent to 610,000 units in the first half of the current year from a year-ago period, according to Tractor and Mechanisation Association.

Tractor sales , a bellwether for the rural economy, are on course for a three-year low this fiscal and overall rural vehicle demand is showing signs of strain as a deficient monsoon impacts farm operations and incomes, industry experts said. Tractor sales are projected to fall by up to 10 per cent year-on-year, while vehicle dealers in some markets are also reporting sharp declines in sales of entry-level cars and two-wheelers. To be sure, the declines come against a high base last year, when sales spiked sharply. Advt

Indications of Distress This was after the reduction in goods and services tax (GST) effective September 22, 2025. Tractor dispatches had increased 23 per cent to a record million-plus units in FY26. Deficient monsoon rainfall at 13 per cent of long-period average in the country and drought in key states such as Maharashtra, Karnataka and Andhra Pradesh, along with rising commodity prices, have dented farmer sentiment and prompted lenders to turn cautious. "There is some distress, which actually starts to impact the industry from here on," said Tarun Khanna , director of marketing at CNH India , maker of New Holland tractors and agriculture machinery.


Source link
Related Topics:EV & Mobility

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.