September 2026 was a strong month for almost every kind of vehicle in India. Cars, two-wheelers and trucks all posted big jumps in registrations. Tractors were the exception. Their registrations grew only slightly, and brokerage Jefferies expects Mahindra & Mahindra, the largest tractor maker, to report lower tractor volumes than a year ago. The reasons are not mysterious: last September was an unusually strong month, and this year's monsoon has been below normal. For a farmer, the more useful question is what this does to the used tractor market. If you are thinking of selling a tractor after the kharif harvest, or buying one, here is what the numbers say and what to do about them.
September in One Table: Tractors Were the Laggard
Most companies publish their September sales figures on the first working day of October. At the time of writing, the official September 2026 tractor numbers from Mahindra Farm Equipment, Escorts Kubota, Sonalika and TAFE had not yet appeared in the sources we checked. So the clearest picture available today is an analyst preview.
In a note published on 30 September 2026 and reported by ANI, Jefferies looked at vehicle registrations for the first 25 days of September. The gap between tractors and everything else is striking.
| Segment | Registration Growth, 1-25 September 2026 | What Jefferies Expects |
|---|---|---|
| Passenger vehicles | 78% year-on-year | Maruti Suzuki wholesales up 17% to 2,22,500 units (estimate) |
| Two-wheelers | 75% year-on-year | TVS Motor up 17% to 6,35,000 units (estimate) |
| Medium and heavy trucks | 53% year-on-year | Ashok Leyland up 27% to 23,950 units (estimate) |
| Tractors | 4% year-on-year | Mahindra tractor volumes down 6% to about 62,000 units (estimate) |
Source: Jefferies preview, 30 September 2026, as reported by ANI. All company figures are analyst estimates, not reported sales.
Part of the big jump in cars and two-wheelers comes from a weak comparison: Jefferies noted that September 2025 was hit by buyers deferring purchases around the GST rate changes. Even allowing for that, tractors stand out. Every other segment was expected to grow by double digits. Tractors were not.
Why Tractors Slowed: A High Base and a Patchy Monsoon
The first reason is simple arithmetic. September 2025 was one of the best months the tractor industry has had. Mahindra sold 64,946 tractors in India that month, up 50% from 43,201 a year earlier, and 66,111 including exports. Escorts Kubota sold 18,267 tractors, up 47.6%. GST on tractors was cut to 5% from 12% with effect from 22 September 2025, in the same month. When the comparison month is that strong, even a healthy September this year can look like a decline.
The second reason is the weather. Tractor demand follows farm income, and farm income follows the rain. In August 2026, retail tractor sales grew just 0.84% to 87,977 units, according to the Federation of Automobile Dealers Associations (FADA). That was a 25% drop from July. FADA said the all-India rainfall deficit had widened to around 13%, with 14 states short of rain, and called tractors the clearest sign of monsoon-linked rural stress that month.
Rating agency ICRA said in September that cumulative south-west monsoon rainfall stood at 85% of the Long Period Average as of 14 September 2026. It reported August tractor wholesales up 6.5% but retail up only 0.8%, and expects tractor wholesale growth to slow to between 1% and 4% in FY2027, after a 23.5% rise in FY2026. ICRA warned that sustained rain deficits could hurt kharif output, dampen farm incomes and curtail replacement demand.
Wholesale and retail are not the same number. Wholesale is what the maker ships to its dealers. Retail is what dealers actually sell to farmers and register. When wholesale grows faster than retail, as it did in August, dealers are holding more stock. That is worth knowing, because dealers with full yards can offer sharper deals on new tractors, and those deals can put pressure on used prices.
None of this undoes a record year. FADA counted 10,50,077 tractors retailed in FY26, up 18.95% and the first time the segment crossed 10 Lakh units. That record is exactly why the coming used supply is large: every one of those tractors is a future used tractor. We wrote about this pipeline when tractor retail jumped 28% in July. The difference now is that the new market is cooling while that supply builds.
What This Means for Used Tractor Sellers and Buyers
A slower new-tractor market does not move the used market in one clean direction. It pulls in two ways at once, and which one wins depends on your district and your timing.
If you are selling
When money is tight, some farmers who would have bought new will look at a used tractor instead, because the ticket is smaller and the loan, if any, is shorter. That can keep used demand steadier than new demand in a slow season. Against that, in districts where the rain failed, there may simply be fewer buyers with cash after harvest, and dealers with surplus new stock may be offering deals that pull buyers away from used machines. And if TREM V emission norms do raise new prices in some power bands, as we explained in our report on the draft TREM V tractor rule, that may add to used demand later. It is a proposal, not a certainty.
What a seller can control is not the market. It is how easy the tractor is to buy. In a slower market, buyers are more careful, take longer to decide and walk away from anything that looks like trouble. A tractor with clean papers, a cleared loan entry and an RC in the seller's own name is the one that sells.
If you are buying
A slower market usually gives the buyer more choice and more time to negotiate. Use that time. The money you save on price is easily lost if the tractor still carries a lender's charge, belongs on paper to someone other than the person selling it, or is older than it looks. All three sit in the government record, and all three can be checked before any advance moves.
Selling After Kharif: The Paperwork That Makes a Tractor Sellable
Many farmers decide to sell a tractor after the harvest, either to upgrade or because cash is needed before the rabi season. Whatever the reason, the sale will go faster if the paperwork is ready before the first buyer calls. Here is what to sort out.
| Document | Why the Buyer Needs It | What to Do Before Listing |
|---|---|---|
| RC in your own name | Only the registered owner can sign the transfer | If the tractor came from a parent or relative and was never transferred, finish that transfer first |
| Lender NOC and Form 35 | A hypothecation entry blocks the ownership transfer | Close the loan, get the NOC and Form 35, and have the entry removed from the RC at the RTO |
| Valid insurance | A tractor used on public roads needs at least third-party cover | Renew a lapsed policy; the buyer will need to move it to their name |
| Trolley RC, if sold together | The trolley is a separately registered vehicle | Keep its RC, insurance and any loan papers ready alongside the tractor's |
| Form 29 and Form 30 | These are the transfer forms the RTO processes | Sign them at the time of sale and report the transfer within 14 days |
The loan entry is where most tractor sales get stuck. Tractors are very often bought on finance. When the last instalment is paid, the lender issues a no objection certificate, but the hypothecation entry stays on the RC and in the VAHAN record until the owner applies to remove it using Form 35. Some farmers clear the loan and never take that second step, because nothing forces them to until they try to sell. If that is your situation, do it now, before you list. Our explainer on using Form 35 to clear the RC before a sale walks through the process.
Know the deadline. Under Section 50 of the Motor Vehicles Act 1988, when a vehicle is sold within the same state, the seller must report the transfer to the registering authority within 14 days, and the buyer must apply within 30 days. Until the record changes, you are still the owner on paper, which matters if the tractor is later involved in an accident or a challan. The 14-day RC transfer rule for sellers explains what that exposure looks like.
Check your own tractor first. Before you advertise, run the Rs 99 RC check on your own registration number on Vahan Verify. It shows what any careful buyer will see: the owner name, the registration date, the RC status and whether a lender is still named on the record. If an old loan entry or a name mismatch turns up, you can fix it before a buyer finds it and uses it to bargain the price down, or walks away.
Selling or Buying a Tractor This Season?
Sellers: see what a buyer will see on your own tractor. Buyers: read the loan entry, owner name and registration date before paying.
Buying: Read the Record Before the Advance Moves
A used tractor is usually inspected by ear and by eye: start the engine, lift the hydraulics, pull an implement across a field. That tells you about the machine. It does not tell you whether the sale can legally go through. For that you need the registration number and the VAHAN record. Our step-by-step used tractor VAHAN check covers each field in detail; these are the ones that matter most.
| Check | What to Look For | Why It Matters |
|---|---|---|
| Hypothecation | Is a bank or NBFC named as lender? | A live entry blocks transfer until the seller produces the NOC and Form 35 is processed |
| Owner name | Does it match the person selling to you? | Only the registered owner can sign Form 29; a relative or middleman cannot |
| Registration date | How old is the tractor really? | Fresh paint and new tyres can make an old machine look younger |
| RC status and blacklist | Is the registration active, with no blacklist flag? | A blacklisted or cancelled RC can stop the transfer completely |
| Trolley | Does the trolley have its own registration number? | It is a separate vehicle with its own record, loan entry and dues |
Hypothecation is the number one trap. Because so many tractors are financed, the chance of finding a lender's name on a used one is high. That is not always a reason to walk away. Often the loan really is paid and only the paperwork is pending. But clearing it is the seller's job, and it should be a condition of the sale. Hold back the payment until the record is clean, because once your money has gone, so has your leverage.
The trolley needs its own check. Section 61 of the Motor Vehicles Act 1988 applies the registration rules to trailers just as they apply to any other motor vehicle. A tractor trolley has its own registration and its own record. Ask for both numbers and check both. We covered the same principle for heavy trucks in one truck, two RCs, and it holds on the farm too.
Do not trust the hour meter on its own. Engine hours are the tractor's equivalent of a car's odometer, and the meter can be replaced or disconnected. Read the hours against the registration date. Then look for wear that hours cannot hide: the seat, the pedals, the steering play, the clutch, the condition of the linkage pins and the tyre wear. If a tractor is many years old but the meter shows very few hours, ask why, and ask for service records. A low reading with heavy wear is a warning sign.
The Vahan Verify RC check costs Rs 99 and shows the owner name, registration date, RC status, insurance validity, whether the vehicle is financed and the lender's name, and the blacklist status. A separate Challan check costs Rs 99, the Blacklist Check costs Rs 99, and the Full Report with RC and challan data together costs Rs 149. If a trolley comes with the tractor, run its registration number too.
Agricultural or Commercial Use: Settle It Before You Pay
There is one more question every tractor buyer should answer first: what will you use it for? The Central Motor Vehicles Rules define an agricultural tractor and an agricultural trailer as non-transport vehicles, meant for field work and for carrying agricultural materials. Many states give them a very low road tax for that reason.
Carrying bricks, sand or other goods for hire is a different use. Courts have treated a tractor and trailer used to carry goods in this way as a goods carriage, which brings permit and fitness requirements and, usually, a higher commercial tax. The exact rules, fees and process differ from state to state. If you plan to do any haulage work for hire, check with your RTO before you buy, and make sure the registration, insurance and permit all describe the work you intend to do. A tractor registered for farm use cannot be turned into a haulage tractor by the seller's say-so.
For sellers, this works the other way. If your tractor and trolley are registered for commercial use with a valid permit, say so in your listing. For a buyer who wants haulage work, that is a real advantage.
A Slower Market Rewards Clean Papers
Sellers: clear the loan entry and check your own record before you advertise. Buyers: read the tractor's VAHAN record for Rs 99, or Rs 149 for the Full Report with challans, before any advance moves.
Frequently Asked Questions
Two reasons stand out in the published data. September 2025 was an exceptionally strong month for tractors, so the comparison base is high: Mahindra's domestic tractor sales alone rose 50 per cent that month. And the 2026 monsoon has been below normal, with ICRA noting cumulative rainfall at 85 per cent of the Long Period Average as of 14 September 2026. ICRA expects tractor wholesale growth to moderate to 1 to 4 per cent in FY2027.
The original RC in your own name, a valid insurance policy, and, if the tractor was ever financed, the lender's NOC with Form 35 so the hypothecation entry can be removed from the record. You will also sign Form 29 and Form 30 for the transfer. If a trolley is part of the sale, it has its own registration and needs its own papers. Under Section 50 of the Motor Vehicles Act 1988, a seller in the same state must report the transfer within 14 days.
A financed tractor carries a hypothecation entry in the lender's favour on its RC and in the VAHAN record. Until that entry is removed using the lender's NOC and Form 35, the ownership transfer cannot go through. A seller saying the loan is paid is not enough; the record has to show the entry cleared. The Vahan Verify RC check at Rs 99 shows whether the vehicle is financed and the lender's name.
Yes. Section 61 of the Motor Vehicles Act 1988 applies the registration chapter to trailers as it applies to any other motor vehicle, so a trolley has its own registration and its own record. When buying a tractor with a trolley, ask for both registration numbers and check both.
The Central Motor Vehicles Rules class agricultural tractors and agricultural trailers as non-transport vehicles meant for farm work and carrying agricultural materials. Carrying goods such as bricks or sand for hire is a different use, and courts have treated a tractor-trailer used that way as a goods carriage that needs a permit. Tax and permit rules vary by state, so check with your RTO before you buy for haulage work.