India’s Emission Standards Help Tractor Manufacturers Tap 162 Countries: ICCT Report

Indian tractor manufacturers expanded their global presence in 162 countries by aligning domestic emission standards with international standards, according to the International Council on Clean Transportation (ICCT). The stricter emissions rules (TREM IV) helped Indian tractor manufacturers enter the markets of Europe, Latin America, and the United States, even as tariffs rose.

Exports to the European Union grew from 38 million dollars in 2008-09 to 181 million dollars in 2024-25, with an 11 percent compound annual growth rate. Belgium imported 28 million dollars worth of 75-130 kW tractors in 2024-25 compared with almost zero two years earlier. Medium-category tractor exports to Belgium increased 200 times in one year after TREM IV implementation.

Brazilian imports of Indian tractors rose from 4.5 million dollars in 2017-18 to 88 million dollars in 2024-25, achieving a 65 percent compound annual growth rate. Indian tractors already complied with Brazil's MAR-I emission rules.

The United States accounted for 21 percent of total tractor exports in 2024-25. Shipments declined 40 percent in 2023-24 and 10 percent in 2024-25. Small tractors under 18 kW and large tractors between 75-130 kW increased due to alignment with US Tier 4f standards. The 37-75 kW segment lost market share.

Asian and African markets also increased imports of Indian tractors. Bangladesh recorded 11 percent annual growth over the past decade. Thailand recorded 16 percent compound annual growth in mid-sized tractors. South Africa maintained 13 percent growth in the 37-75 kW range. Mexico became a new market.

India reduced the Goods and Services Tax on tractors and farm equipment. ICCT noted this could improve affordability in rural areas and support global competitiveness along with emission reforms.

TREM V standards will be enforced from April 2026. These standards align Indian emissions rules with the European Union and exceed US requirements. The transition moves from Euro IV to Euro VI equivalent standards in agriculture and transport.

"India's leap from Euro IV to Euro VI shows policymakers' strong commitment to cleaner transport. With TREM V enforcement starting in April 2026, Indian emission standards will be in harmony with those in the EU and more stringent than U.S. standards. Applying similar ambition to agricultural tractors can modernize domestic fleets and open new opportunities for India in the global export market," said Amit Bhatt, India Managing Director, ICCT.

"Cleaner, next-generation tractors can power India's rural growth while opening doors worldwide. Stricter standards are not a burden, they are a bridge to global trade," said Aravind Harikumar, Author and Researcher, ICCT.

Meeting international emission standards has become a key factor in market access. Indian tractor manufacturers used compliance to overcome trade barriers and expand exports across developed and emerging markets.

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