New Delhi, Sep 23
The tractor segment in India is expected to grow by 4-7 per cent in FY2026, while the two-wheeler industry is also likely to record healthy growth, a new report said on Tuesday.
The forecast is supported by above-normal rainfall, strong rural incomes, festive demand, and the recent GST rate cuts that are expected to improve affordability and boost sales, according to the data compiled by rating agency ICRA.
The tractor industry has already shown strong performance in FY2026 so far. Wholesale volumes grew 28.2 per cent year-on-year (YoY) in August 2025, while cumulative growth for the first five months of the fiscal stood at 11.7 per cent.