India is in the advanced stages of finalising the next phase of emission norms for tractors and may delay the rollout of the stricter rules for models in the 25–75 horsepower (hp) range, following lobbying by manufacturers who have argued that tighter standards could raise compliance costs and make these machines more expensive for small farmers, two industry executives aware of the matter said.
Faridabad-based Escorts Kubota chief financial officer Bharat Madan told Mint that the industry has held meetings with the Union ministry of agriculture, and final recommendations have been submitted to the ministry of road transport and highways (MoRTH). Manufacturers expect a relaxation in the emission norms, which are now expected to be implemented from October 2026.
“The ministry of road transport has to take that call and finally issue a notification. But the understanding and recommendation which has gone is that there will be no change in the emission norm at least in the 25 to 75 horsepower segment,” Madan said when asked for updates on the emission norms.
“There may be an increase in the emission norm for more than 75 and less than 25 horsepower tractors,” he added. The upcoming norms may also be modified, which can ease the emission targets for tractor manufacturers in the 25 to 75 hp segment, Madan said.
Emission norms being referred to here are called Tractors Emission Norms Stage V (TREM V), which were earlier proposed to be implemented from April 2026 for all tractor categories. Currently, tractors over 50 hp come under TREM stage IV regulations while models under 50 hp are governed by TREM stage IIIA. These regulations are intended to limit emission of pollutants from tractors.
Stringency of emission norms increases with each stage.
Another senior executive at a tractor company confirmed the industry’s proposal, adding that TREM V for the 25–75 hp category is now expected to be implemented only in 2027, once the government firms up the norms.
“The new norms are expected to be applicable to tractors above 75 hp from October 2026,” the second executive mentioned above added, requesting not to be named.
The proposed delay in rolling out stricter emission norms would come as significant relief for tractor makers, who have warned of steep price hikes if tighter standards are enforced immediately on tractors, the lifeblood of the country’s vast agrarian hinterland.
Some of the biggest beneficiaries of relaxation for tractor emission norms would include Mahindra and Mahindra, TAFE Ltd, Escorts Kubota, and Sonalika Group’s International Tractors Ltd.
T.R. Kesavan, director and group president at TAFE, said that the final decision has not been notified yet, but the government has acknowledged concerns of the industry.
"There have been consistent representations from the farming community and allied industry, highlighting that any regulatory changes should not increase the owning and operating burden on farmers."
Queries sent to ministries of agriculture and road transport, as well as to Mahindra and Mahindra, and International Tractors remained unanswered till press time.
Price impact concerns
To be sure, most of the tractors being sold in the country fall in the 25 to 75 horsepower segment, with more than three fourths in the 25 to 50 hp range. In the calendar year 2025, tractor sales surged by 11% to 996,633 units compared to 2024, as GST cuts, good monsoon and higher farmer earnings all led to a robust growth environment.
Analysts suggest that the introduction of stringent TREM V norms can lead to a significant price hike for tractors under 50 hp.
“Compliance with TREM V is expected to increase tractor prices of below 50 horsepower by at least 15-20%, as it requires a major technological overhaul of engines and exhaust systems to comply with stricter pollution standards,” Poonam Upadhyay, director at Crisil Ratings, said.
“Given the high price sensitivity in these segments, competitive intensity remains elevated. While players will attempt to pass on compliance costs, full pass-through may be challenging, leading to selective cost absorption to protect market share and sustain growth momentum,” she added.
Tractors in the 25-50 hp range are typically priced between ₹3 lakh and ₹10 lakh depending on the engine capacity. Tractors in the 75hp capacity start around ₹12-15 lakh.
Wider regulatory push
In addition to tractors, automobile companies are also in talks with the government over implementation of emission and fuel efficiency norms in passenger vehicles and commercial vehicle segments. These moves come as the government targets reduction in overall pollution from the transport sector in urban and rural India.
The next set of stringent fuel efficiency norms for both passenger vehicles and commercial vehicles are set to come into effect from April 2027.