Chennai: Domestic tractor sales declined 18% year-on-year to 1,19,667 units in Sept 2026 due to a host of factors. However, sales rebounded 73% month-on-month from 69,250 units in Aug this year.Industry representatives attribute the decline in Sept volumes to a patchy monsoon, a high base following the GST rate reduction in Sept 2025, a shift in the festive season to October 2026 and lower Kharif sowing.Despite the Sept decline, domestic tractor sales grew 8% YoY to 6.1 lakh units during H1FY27, compared with 5.6 lakh units in the corresponding period last year, according to data from the Tractor and Mechanization Association.The half-year performance was supported by year-on-year growth in domestic sales from April through Aug, before Sept emerged as an exception.Top tractor maker Mahindra & Mahindra reported a 23% decline in domestic sales to 50,208 units last month, while its first-half volumes grew 6% to 2,62,872 units. Escorts Kubota’s domestic volumes declined 16% year-on-year to 14,911 units in September.Veejay Nakra, president – farm equipment business, Mahindra & Mahindra, said the YoY decline in its volumes was primarily attributable to the shift in the festive season, which begins in Oct this year, compared with Sept last year. The comparison was also affected by a higher base in Sept 2025, when sales benefited from the implementation of the GST rate cut.However, Sonalika Tractors bucked the trend, reporting 6% growth in domestic sales to 19,086 units last month. In H1FY27, its domestic volumes grew 19% to 84,165 units.Tractor production stood at about 1.2 lakh units last month, marginally higher than the 1.14 lakh units produced in Sept 2025.“While the tractor segment has seen healthy growth momentum post the GST rate cuts, aided by a low base, we expect growth rates to taper off as the base catches up from Sept 2026. Additionally, erratic rainfall amid the ongoing El Niño could further weigh on growth in H2FY27, particularly against a higher base,” analysts at Motilal Oswal Financial Services said.
