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Tractor Industry Growth Expected to Moderate Sharply in FY27

Tractor Industry Growth Expected to Moderate Sharply in FY27
Tractor industry growth seen slowing to 1-4% in FY27 · financialexpress.com

Tractor sales grew very quickly at the start of FY27.

However, experts think this fast growth will slow down later in the year.

This is partly because tractor sales were already very strong in FY26.

The amount of rain is also important because farmers need good rainfall and water for their crops.

Rainfall has improved, and crop planting is now only slightly below last year’s level.

Still, weaker rains could reduce farm income and tractor purchases.

Government subsidies and minimum support prices may help farmers continue buying tractors.

Tractor companies are expected to remain financially healthy even if sales growth slows.

Key facts

July wholesale growth
20.1% year-on-year in FY27
July retail growth
28.3% year-on-year
FY26 wholesale growth
23.5%
FY27 growth forecast
ICRA expects domestic tractor volumes to grow 1-4%
Monsoon deficit
About 12% on August 10, compared with about 30% on June 30
Kharif sowing
Acreage was down 2% year-on-year as of August 7
Profitability outlook
Healthy, supported by operating leverage and stable raw material costs

Sources

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