CNH India‘s domestic tractor sales rose 42 per cent year-on-year to 30,248 units in the first half of calendar 2026, significantly outpacing the 25 per cent growth recorded by the overall domestic tractor industry, as the company posted its highest-ever market share in India.
The company’s exports also grew around 20 per cent to 6,666 units during the January-June period, despite temporary disruption from US tariffs earlier this year, according to Narinder Mittal, President and Managing Director, CNH India.
“We did quite well in H1, achieving our highest-ever market share in India. The industry grew 25 per cent, we grew 42 per cent, selling more than 30,000 tractors domestically,” Mittal told PTI.
CNH India operates the New Holland and Case IH tractor brands in the country.
The company attributed its strong domestic performance to technology-led products, an expanding dealer network and support from its financial services arm, CNH Capital. A reduction in GST and favourable monsoon conditions also supported demand during the first quarter.
However, Mittal expects some moderation in the second half as market sentiment has softened.
“Now with the sentiment getting a little negative, we might see some drop in the industry in H2,” he said, while maintaining that overall demand for the full calendar year should remain healthy.
Capacity to double by 2028
CNH India is also expanding its manufacturing footprint, with a fourth facility planned near its existing Greater Noida plant.
The company has been allotted 100 acres by the Yamuna Expressway Authority for the new facility, which will cater to both domestic and export markets.
The plant is expected to be commissioned in early 2028 and will nearly double CNH India’s annual tractor production capacity to around 1.2 lakh units, from approximately 70,000 units currently.
The company’s existing plant produced around 59,000 units in 2025.
The capacity expansion comes as CNH looks to strengthen its position in India and increase its contribution to global operations.
Eyes double-digit market share
CNH India’s market share currently stands at around 4.5 per cent, with the company historically focused on higher-horsepower tractors, particularly the 45-50 HP and above segment.
Mittal said the company has now expanded its portfolio into lower horsepower categories through compact and smart tractors, giving it a wider product range to address the Indian market.
“We came up with a smart series of tractors and compact tractors that we’ve been supplying to Indian farmers. Now we have the complete range available in the Indian market, and growing our network will help us grow market share further,” he said.
Mittal expressed confidence that CNH India could achieve double-digit market share over the next five to six years, supported by its technology-focused products, broader portfolio and expanding dealer network.
“Our product is getting better and better technologically, and we’re providing affordable technology to farmers,” he said.
Exports recover after US tariff disruption
CNH India’s export business was temporarily affected by US tariffs earlier this year, but shipments have since resumed as the situation has eased.
The US accounts for around 30 per cent of CNH India’s export mix. However, the company does not currently plan to diversify away from its existing markets, with Mittal saying overall demand across the US, Europe and other international markets remains broadly unchanged.
“The overall market pool remains the same across the US, Europe, and other markets worldwide,” he said.
India is a key part of CNH’s global strategy, with the company focusing on four areas — the domestic market, exports, its India Technology Center in Gurgaon and sourcing components from Indian suppliers for its global manufacturing operations.
Beyond finished tractors, CNH also exports components such as power take-offs (PTOs) and axles from India.
New compact tractor planned
CNH India plans to launch a new 25-30 HP compact tractor in the second half of 2028. The model will target both domestic and export markets, including the US and Europe.
The company expects demand for higher-horsepower tractors to continue growing in India, while also seeing opportunities at the lower end as farmers increasingly seek technology that offers measurable value.
Low mechanisation offers growth opportunity
Mittal said India’s relatively low level of mechanisation in several agricultural activities presents a significant opportunity beyond conventional tractor penetration.
Sugarcane mechanisation, for instance, stands at only around 4 per cent, despite India being the world’s second-largest sugarcane producer. Mechanisation in biomass and baling is around 2 per cent, while cotton-picking mechanisation remains almost non-existent.
“Industry and government should work together to improve mechanisation in these areas,” Mittal said.
He cautioned that tractor penetration alone should not be the sole measure of agricultural mechanisation, given India’s average landholding size of around one hectare or less.
CNH sees growing demand for specialised equipment, particularly as government initiatives around biomass-based power generation and compressed biogas create opportunities for balers and related machinery.
The company currently offers small square balers, round balers and large balers, alongside tractors ranging from 160 HP to 300 HP.
“We have the largest portfolio in India because we see ourselves as a global technology player,” Mittal said, adding that the company’s product range extends from compact tractors to 300 HP machines as well as harvesters, sugarcane combine harvesters and balers.
Author: Prime Haryana
Information with Confirmation