Despite concerns over the possible emergence of a Super El Niño phenomenon, tractor registrations have remained in top gear in the first quarter of financial year 2026-27 (Q1FY27).
According to data from the government's Vahan portal, tractor registrations up to June 24 have already surpassed the corresponding period last year. Registrations stood at 2.28 lakh units as of June 24, compared with 2.21 lakh units recorded in Q1FY26.
With a few days still left in the quarter, the segment is on track to post double-digit growth in Q1FY27. June registrations are also expected to cross the 80,000-unit mark, which, if achieved, would make it the second consecutive month to do so.
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Poonam Upadhyay, Director, Crisil Ratings told NDTV Profit, that growth in the segment is now expected to come under pressure.
"Tractor registrations are tracking at around 2.3 lakh units so far in Q1 FY27, supported by improved affordability following the GST rate cut. Growth is likely to come under pressure going ahead as the base turns significantly stronger in H2, reflecting last year's GST-led demand surge," said Upadhyay.
Vahan data shows the fiscal year began on a strong note, with registrations rising 23% year-on-year to 75,109 units in April. Momentum continued in May, when registrations increased 11.17% to 83,092 units. According to the Federation of Automobile Dealers Associations (FADA), May 2026 marked the highest-ever monthly tractor registrations for the segment.
In June, tractor registrations stood at 77,214 units. As of June 24, registrations had already reached 70,347 units, indicating another strong monthly performance.
The outlook, however, remains closely tied to the monsoon. The India Meteorological Department (IMD) has forecast below-normal rainfall at 90% of the long-period average (LPA) for this year's monsoon season. Upadhyay noted that the possibility of El Niño conditions adds another layer of uncertainty.
"While MSP support, subsidies and strong crop output last year continue to support sentiment, a weak monsoon could weigh on farm incomes if kharif output disappoints. Hence, rainfall distribution over July-August will remain critical," she said.
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According to FADA's latest data, the Mahindra Group retained its leadership position with a market share of 41%. International Tractors (Sonalika) followed with a 13.38% share, while TAFE accounted for 12.83%.
Escorts Kubota held the fourth-largest share at 11.48%, followed by John Deere India at 7.27%, Eicher Tractors at 5.92%, and CNH Industrial at 4.64%.
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