New Delhi, May 24 -- India's tractor industry is expected to see a phase of volume consolidation in FY27 due to a high base effect, price hikes and normalization of subsidy-led demand, though long-term structural drivers for growth remain strong, according to a sector update report by YES Securities.

The report said tractor industry volumes are likely to remain broadly flat in FY27 despite healthy underlying demand drivers.

"FY27 TIV are likely to remain broadly flat due to high base, price hikes, de-stocking and normalization of subsidy-led demand from MH and Punjab, underlying demand drivers remain intact," the report said.

According to the report, tractor industry volumes in the first quarter of FY27 are expected to grow 23-24 per c...