M&M sees green shoots in US tractor mkt as tariffs ease after trade talks

Speaking to reporters after the company’s Q3 results, Rajesh Jejurikar, executive director and CEO (Auto and Farm Sector), said the past eight to nine months had been challenging for the US market due to steep tariffs. “We held back selling at a 50 per cent tariff and only sold what was absolutely needed in the market, while hoping for a resolution to the trade agreement issue, which has now happened,” he said. Jejurikar added that the company has inventory in bonded warehouses in the US, which it will begin supplying to the market once the executive order is issued.

“With the tariff now at 18 per cent, we are reasonably competitive with other countries exporting tractors into the US. Earlier, most countries were at a 15 per cent tariff while we were at 50 per cent, which made us uncompetitive and led to some volume loss,” he said.

M&M exported close to 17,000 tractors during the first 10 months of FY26. The company exports to nearly 50 countries across North and South America, Africa, Asia-Pacific and SAARC nations, parts of Europe, and the Middle East.

Veejay Nakra, president of M&M’s Farm Equipment business, told Business Standard that between April 2025 and January 2026, the company sold 16,861 tractors in overseas markets, marking a 24 per cent year-on-year growth and significantly outperforming overall industry exports. “This has been on account of a strong performance in South Asia and Africa. Going forward, we continue to have a strong positive outlook around our exports business,” Nakra said.

Jejurikar said M&M’s OJA platform has received strong customer response. OJA is a range of lightweight, compact tractors in the 20–40 horsepower category, designed for small- and medium-scale farming, including vineyard, orchard and inter-culture applications, owing to their narrow width and high manoeuvrability.

He added that while the North American tractor industry has been in a downturn over the past one-and-a-half to three years, Mahindra gained a share point in the sub-20 horsepower segment. “The OJA series has received very good feedback and we are close to 9–10 per cent market share in that segment. We have been the number three player in North America for a long time in the sub-100 horsepower segment,” Jejurikar said, adding that stabilisation of trade conditions should help the company rebuild volumes and return to a growth phase.

Meanwhile, on the passenger vehicle front, Jejurikar said the EU trade deal would open up export opportunities over time. “We do not yet have many left-hand-drive models, but over the next couple of years, by 2028, several mainstream models will be available in left-hand drive, enabling a more robust EU strategy. Lifestyle pickup products launching in 2027 will also support exports,” he said. M&M has earlier said it plans to enter the UK market over the next 18–24 months.