Indian tractor retail sales demonstrated remarkable resilience in the first half of 2026-27, rising 24.77% year-on-year to 386,648 units during April-July from 309,896 units in the corresponding period last year, according to Federation of Automobile Dealers Associations (FADA) data. This performance was achieved despite below-normal southwest monsoon conditions and the emergence of El Niño conditions, with July registrations hitting a record high of 117,349 units - the highest ever for the month. As reported by Business Standard, CNH's India unit delivered exceptional performance with 30,248 tractors sold in the domestic market, representing a 42% jump from the previous year and marking the company's highest-ever market share in India.
Export performance remained robust despite global challenges, with CNH India selling 6,666 tractors overseas in the first half, marking approximately 20% growth compared to the prior year. As reported by Business Standard, this growth was achieved despite headwinds from US tariffs earlier in 2026. The company's export strategy focuses on the United States, which accounts for about 30% of the company's export mix, though CNH has no plans to diversify away from existing markets given stable demand across US, Europe, and other regions.
CNH remains on track with its expansion strategy, planning a fourth manufacturing facility near its existing Greater Noida plant. According to Business Standard, the company has been allotted 100 acres by the Yamuna Expressway Authority, with the new plant expected to be commissioned in early 2028. This facility will roughly double CNH's annual tractor production capacity in India to approximately 1,20,000 units from around 70,000 currently, up from the existing plant's production of 59,000 units in 2025.
Looking ahead, CNH India plans to launch a new compact tractor in the 25-30 HP range in the second half of 2028 for both domestic and export markets, including the US and Europe. As reported by Business Standard, President and Managing Director Narinder Mittal expressed confidence about reaching double-digit market share within five to six years, citing improving technology and affordable technology offerings to farmers. The company views India as central to its global strategy, built on four pillars including the domestic market, exports, the India Technology Center in Gurgaon, and sourcing components for plants worldwide.
Despite positive performance, CNH acknowledges potential challenges ahead, with Mittal noting that softer sentiment could weigh on sales in the second half. According to Business Standard, the company sees significant growth opportunities in mechanisation, particularly in sugarcane mechanisation at just 4% despite India being the world's second-largest sugarcane producer, and biomass mechanisation at around 2%. The strength in tractor purchases reflects factors beyond current monsoon conditions, including cash flows from the previous rabi harvest, replacement demand, crop prices, government support and the need to complete farm operations within a compressed sowing window.
