Archive · 23 Sep 2025
Tractor and Two-Wheeler Sales Projected to Rise in FY2026
A new report says that the sale of tractors and two-wheelers in India is expected to increase.
This is because there has been a lot of rain, which helps farmers, and also because of the government reducing GST.
Tractor sales have already shown strong growth.
While two-wheeler sales grew slower, experts believe there is potential for growth, especially during the festive season.
Electric two-wheelers also continue to see growing sales.
Tractor sales expected to grow by 4-7% in FY2026.
Two-wheeler sales are also expected to grow in FY2026.
Tractor wholesale volumes grew 28.2% YoY in August 2025.
Retail tractor sales rose sharply in August 2025 by 30.1%.
EV two-wheeler sales also grew in August 2025.
- Who
- ICRA, industry analysts
- What
- Forecasts for tractor and two-wheeler sales
- When
- FY2026 (forecast period), August 2025 (data)
- Where
- India
- Why
- To assess market trends and growth potential.
Factors Influencing Sales
Industry Growth Forecasts
GST Impact
Factors Influencing Sales
The recent GST rate cut will increase demand.
Industry Growth Forecasts
GST is cited as one of the supporting factors behind anticipated sales growth.
Rainfall Impact
Factors Influencing Sales
Above-normal rainfall has boosted agricultural activity and rural demand.
Industry Growth Forecasts
Good monsoons are noted as a supportive factor for sales.
- Tractor Sales Growth Forecast
- 4-7% in FY2026
- Two-Wheeler Sales Growth Forecast
- 6-9% in FY2026
- August 2025 Tractor Wholesale Volume Growth (YoY)
- 28.2%
- August 2025 Two-Wheeler Wholesale Volume Growth (YoY)
- 7.2%
- August 2025 Retail Tractor Sales Increase (YoY)
- 30.1%
- August 2025 Retail Two-Wheeler Sales Increase (YoY)
- 2.2%
- EV Two-Wheeler Sales August 2025
- 1,04,725 units