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

CNH India recorded strong tractor sales growth during the first half of calendar year 2026, selling 30,248 tractors in the domestic market, up 42% from the same period last year. The company also achieved 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. The company operates the New Holland and Case IH brands in India.

The company's domestic sales growth was higher than the overall Indian tractor market, which grew by around 25% in H1 2026.

CNH India Exports Grow 20% in H1 2026

CNH India exported 6,666 tractors during the first six months of 2026, recording around 20% growth over the previous year.

Exports were temporarily affected by US tariffs earlier this year. However, Narinder Mittal said shipments have 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, while demand across the US, Europe and other global markets remains broadly stable, although product demand varies by region.

GST Cut and Monsoon Support Tractor Demand

CNH India attributed its H1 sales growth to favourable market conditions. A reduction in GST and good monsoon conditions supported tractor demand during the first quarter.

However, the company expects some pressure on tractor sales in the second half of 2026 as market sentiment has weakened. Mittal expects some decline in industry sales during H2 but continues to expect overall tractor demand for the full calendar year to remain good.

The company 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 planning its fourth manufacturing facility near its existing Greater Noida plant to increase production capacity.

The company 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 manufacture tractors for both Indian and export markets.

The new facility is expected to be commissioned in early 2028. Once operational, it is expected to almost double CNH India's annual tractor production capacity in India to around 1,20,000 units, from the current capacity of around 70,000 units.

CNH India's existing plant produced around 59,000 tractors in 2025.

New 25–30 HP Compact Tractor Planned for 2028

CNH India also plans to introduce a new 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 model is expected to strengthen CNH India's presence in 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.

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

CNH India expects its wider product range and expanding dealer network to support further market-share gains. Mittal also said the company is confident of reaching double-digit market share within five to six years, supported by its growing tractor portfolio and technology suited to Indian farmers.

India Remains Important to CNH's Global Strategy

India continues to have an important role in CNH's global business plans. The company's India strategy focuses on four key 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, including power take-offs (PTOs) and axles, from India to other markets.

Farm Mechanisation Offers Further Growth Opportunities

Narinder Mittal also highlighted the potential for increased 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 categories are increasingly looking for technology that offers clear value for their farming operations.

CNH sees significant opportunities in areas where mechanisation remains low. Sugarcane mechanisation is around 4%, biomass and baling mechanisation is around 2%, while cotton picking remains almost completely unmechanised.

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

He also highlighted that average Indian landholdings are close to one hectare or smaller. Therefore, he said the focus should not only be 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% H1 2026 domestic tractor sales growth, compared with around 25% growth for the overall domestic tractor market, reflects the company's strong performance.

The planned fourth manufacturing plant, higher production capacity and upcoming 25–30 HP compact tractor point towards CNH India's broader expansion strategy in India.

With the new facility expected to increase annual production capacity to around 1,20,000 tractors by 2028, alongside a wider tractor portfolio and greater focus on farm equipment, CNH India is aiming to strengthen its position in India's growing agricultural mechanisation market.