CNH India Plans New Tractor Plant After 42% H1 Sales Growth

CNH India recorded a strong rise in tractor sales during the first half of the 2026 calendar year. The company sold 30,248 tractors in the domestic market, marking a 42% increase compared with the same period last year. The company also reported its highest-ever market share in India during the period.

CNH India President and Managing Director Narinder Mittal shared the sales update in an interview with PTI. CNH India operates the New Holland and Case IH brands in the country.

The company's domestic growth was higher than the overall Indian tractor market. The domestic tractor industry grew by around 25% in H1 2026, while CNH India's sales increased by 42%.

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CNH India Exports Rise 20% in H1 2026

CNH India also recorded growth in its export business during the first six months of 2026. The company exported 6,666 tractors, up around 20% from the previous year.

Exports were affected for some time by US tariffs earlier this year. However, Mittal said shipments have now resumed as the tariff situation has eased.

The US accounts for around 30% of CNH India's total export mix. The company does not currently plan to move away from its existing export markets. According to Mittal, demand across the US, Europe and other global markets remains broadly stable, although product demand can vary by region.

GST Cut and Good Monsoon Support Tractor Sales

CNH India said favourable market conditions helped its sales during the first half of the year. A reduction in the Goods and Services Tax (GST), along with good monsoon conditions, supported strong demand during the first quarter.

However, the company expects some pressure on tractor sales in the second half of 2026 because market sentiment has become weaker.

Mittal said that while the company may see some decline in industry sales during H2, he still expects overall tractor demand for the full calendar year to remain good.

CNH India also credited its technology-focused tractor range, wider dealer network and support from CNH Capital for its sales growth.

CNH India Plans Fourth Manufacturing Plant

CNH India is also moving ahead with plans to expand its manufacturing capacity. The company plans to set up its fourth manufacturing facility near its existing Greater Noida plant.

CNH India has received 100 acres from the Yamuna Expressway Authority for the new facility. The plant will be located close to the current factory and will produce tractors for both the Indian and export markets.

The new plant is expected to be commissioned in early 2028.

Once operational, the facility is expected to almost double CNH India's annual tractor production capacity in India to around 1,20,000 units, compared with the current capacity of around 70,000 units.

The company's existing plant produced around 59,000 tractors in 2025.

New 25–30 HP Compact Tractor Planned for 2028

CNH India also plans to expand its tractor range with a new compact tractor.

The company plans to launch a 25–30 HP compact tractor in the second half of 2028. The tractor will be offered in both domestic and export markets, including the US and Europe.

The new compact tractor will help CNH India expand further into the lower-horsepower segment, where demand for compact tractors is growing.

CNH India Targets Higher Market Share

CNH India's current market share in India is around 4.5%, while Mahindra & Mahindra remains the market leader.

According to Mittal, CNH India's earlier focus was mainly on higher-horsepower tractors, especially models in the 45–50 HP and above segment. The company has now expanded into lower-horsepower tractors with its compact and Smart series.

CNH India believes that its wider product range and growing dealer network can help it increase market share in the coming years.

Mittal also said the company is confident about reaching double-digit market share within five to six years. He pointed to the company's growing tractor range and focus on technology suited to Indian farmers.

India Remains Important for CNH's Global Business

India continues to play an important role in CNH's global business plans. The company's India strategy is based on four main areas:

• Domestic tractor and farm equipment sales
• Tractor and equipment exports
• India Technology Center in Gurgaon
• Sourcing components from Indian suppliers for global plants

CNH India also exports components such as power take-offs (PTOs) and axles from India to other markets.

Mechanisation Creates New Growth Opportunities

Mittal also spoke about the scope for more farm mechanisation in India. He said the tractor market is gradually moving towards the 45 HP and above segment, and this trend is expected to continue.

At the same time, farmers in lower-horsepower segments are also looking for technology that provides clear value for their farm work.

CNH sees large opportunities in areas where farm mechanisation is still low. For example, mechanisation in sugarcane is around 4%, while biomass and baling mechanisation is around 2%. Cotton picking remains almost completely unmechanised.

Mittal said the industry and government need to work together to increase mechanisation in these areas.

He also pointed out that average Indian landholdings are close to one hectare or smaller. Because of this, he said the focus should not be only on increasing tractor ownership but also on improving mechanisation through suitable farm equipment.

What This Means for India's Tractor Market

CNH India's 42% growth in H1 2026 comes as the overall domestic tractor market grew by around 25%. The planned manufacturing plant and upcoming 25–30 HP compact tractor also show the company's focus on expanding its presence in India.

With higher production capacity planned for 2028, a wider tractor range and more focus on farm equipment, CNH India is looking to increase its share of India's growing farm mechanisation market.

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