Mahindra & Mahindra and Escorts Kubota, two listed Indian tractor makers, reported lower domestic tractor sales for September 2026 in announcements issued on 1 October. Both said the comparison was distorted by a festive season that starts in October this year and by a high base in September 2025, when a cut in the goods and services tax (GST) rate lifted sales. Both remain ahead of last year for the first half of the financial year.

Mahindra: domestic down 23%, exports up 62%

Mahindra & Mahindra’s Farm Equipment Business sold 50,208 tractors in the domestic market in September 2026, against 64,946 in September 2025, a fall of 23%. Exports, which the company says include CKD (completely knocked down) units, rose 62% to 1,892 from 1,165. Total sales were 52,100 units, down 21% from 66,111.

For April to September 2026, the first half of the 2026 to 2027 financial year, Mahindra’s domestic sales were 262,872 units, up 6% from 247,336. Exports were 11,196, up 16% from 9,689, and total sales were 274,068, up 7% from 257,025.

The year-on-year decline in volumes is primarily attributable to the festive season shift, commencing in October this year, as compared with September last year. The comparison is also impacted by a higher base in September 2025, which benefited from the implementation of the GST rate cut during the period.

Veejay Nakra, President, Farm Equipment Business, Mahindra & Mahindra Ltd.

Escorts Kubota: domestic down 16.2%

Escorts Kubota Limited’s Agri Machinery Business sold 15,214 tractors in September 2026, against 18,267 a year earlier, a fall of 16.7%, according to its filing with BSE and the National Stock Exchange of India. Domestic sales were 14,911 units, down 16.2% from 17,803, and exports were 303, down 34.7% from 464.

The company said September was not comparable with a year earlier because of the high base after the GST rate reduction in September 2025, the shift of the festive season to October 2026, patchy monsoon conditions and relatively lower kharif sowing. It said festive demand, crop harvesting and improving rural liquidity are expected to support industry volumes, but that the high base effect may continue to moderate industry growth in the near term.

For the July to September quarter, Escorts Kubota’s domestic tractor sales rose 0.9% to 32,628 units and total sales rose 0.4% to 34,017. For April to September, domestic sales rose 11.3% to 68,085, exports fell 14.8% to 2,794 and total sales rose 10.0% to 70,879. Its construction equipment business sold 795 machines in September, up 92.5% from 413, which the company described as its highest ever September monthly sales.

Neither company gave a state-wise breakdown, model mix, horsepower split or pricing in its September announcement.

TAD’s reading

  • Timing or demand: Both companies put the September fall down mainly to calendar effects, and their first-half volumes are still higher than last year. Escorts Kubota’s reference to patchy monsoon conditions and lower kharif sowing is a demand-side caveat that timing alone does not explain, and October volumes will test it.
  • For dealers and financiers: Lower September despatches suggest manufacturers held back shipments ahead of a later festive season. October billing and retail conversion will show whether that volume returns or is lost.
  • For exporters and suppliers: Export trends diverged, with Mahindra’s shipments up 62% and Escorts Kubota’s down 34.7%, both from small bases. That points to company-specific markets rather than a single export cycle.
  • For investors: Escorts Kubota’s construction equipment volumes nearly doubled in September, which softens the effect of weaker tractor despatches on its overall business mix.