Escorts Kubota Awaits Government Subsidy Before Launching 35 HP Electric Tractor

Key Highlights:

• 35 HP electric tractor development is nearly complete.

• Escorts Kubota awaits government subsidy support.

• Electric model costs around ₹12.5 lakh.

• Standard three-phase connection supports charging.

• Company seeks incentives and cheaper loans for buyers.

Escorts Kubota Ltd is waiting for government subsidy support before moving ahead with the wider commercial rollout of its next-generation 35 HP electric tractor. The company says its electric tractor technology is almost ready, but the high purchase price remains a major challenge for farmers and buyers.

Speaking at the India Clean Transportation Summit in Delhi on Wednesday, Jayagopal S., General Manager and Head of EV Systems Engineering at Escorts Kubota, said the company's research and development work on the tractor is nearly complete.

"It is almost development done at our R&D. Now it is a management call, and we are waiting for some subsidy kind of promotion from the government, so that we can make this as a viable product for the market," he said.

35 HP Electric Tractor Developed With a Larger Battery

Escorts Kubota, formed through the partnership between Escorts Group and Japan's Kubota Corp, already sells a 25 HP electric tractor to hobby farmers in the United States.

The company has now developed a more powerful 35 HP electric tractor with a larger battery. According to Jayagopal, the new model was developed based on feedback received from early customers.

Both electric tractor models can be charged using a standard three-phase home electricity connection. This means farmers and owners may not require dedicated charging infrastructure for regular charging.

High Price Remains the Biggest Challenge

According to Escorts Kubota, pricing is currently the biggest barrier to the wider adoption of electric tractors.

A conventional 35 HP diesel tractor costs around ₹5 lakh, while a comparable electric tractor could cost approximately ₹12.5 lakh. This makes the electric version roughly 2.5 times more expensive than its diesel counterpart.

Jayagopal said that an electric tractor can deliver a return on investment similar to a diesel tractor if it is used for at least eight hours every day. After reaching the break-even point of around three years, the profitability of an electric tractor can become roughly twice that of a diesel tractor.

Existing Dealers Can Sell Electric Tractors

Escorts Kubota does not expect to make major new investments in its dealership network for electric tractors.

According to Jayagopal, the ecosystem for electric and diesel tractors is largely similar, apart from charging and EV-specific components. Existing dealers can sell electric tractors, while additional training will mainly be needed for after-sales staff responsible for EV repairs and servicing.

The company is also equipping its electric tractors with telematics technology. This will allow engineers in India to remotely diagnose faults and provide software updates, including for tractors operating in the United States.

Battery Swapping Not Practical for Tractors

Jayagopal also addressed the possibility of battery swapping to reduce charging downtime. However, he said the technology is currently not practical for tractors because of the heavy battery packs.

A typical electric tractor battery pack weighs around 250 kg, making it difficult and unsafe to swap in field conditions.

Most tractors operate for less than 10 hours a day, giving owners sufficient time to recharge them overnight. Where high-capacity DC charging infrastructure is available, a fast charger can charge the battery from empty to full in around one hour.

Escorts Kubota Calls for Electric Tractor Subsidy

The company has urged the government to introduce subsidy support for electric tractors, similar to incentive schemes available for electric trucks and buses.

Jayagopal also suggested that the scheme should offer preferential lending rates and additional incentives, particularly for electric tractors registered in the name of women.

Government support could help reduce the large price gap between diesel and electric tractors and make the technology more commercially viable for Indian farmers.

Escorts Kubota's overall tractor business continues to grow despite electric tractors remaining a very small part of the company's total sales.

In August, Escorts Kubota sold 10,072 tractors, recording a 19.1% increase compared to the previous year. Domestic sales increased 20.5% to 9,523 units, while exports declined marginally by 0.9% to 549 units.

During the April-August period, cumulative tractor sales increased 20.5% to 55,665 units. Domestic demand grew 22.6%, helping offset an 11.6% decline in exports.

The figures highlight the continued strength of India's diesel tractor market, while electric tractors remain at an early stage of adoption.

Also Read: Mecwin Develops 45 HP Electric Tractor Powertrain, Targets Tractor OEMs

CMV360 Says

Escorts Kubota's 35 HP electric tractor is close to being ready for the market, but its wider launch depends heavily on government support. The company believes subsidies, affordable financing and additional incentives can reduce the significant price gap with diesel tractors. While electric tractors offer lower operating costs and strong long-term returns, affordability remains crucial for wider adoption in India's largely diesel-dominated tractor market.