Escorts Kubota Tractors Gains 15–25% Revenue from South India, Confirms Company

Key Highlights

• South India contributes ~30% agri-solution revenue

• Kubota: 25% revenue; Powertrac: 15% revenue from South India

• New rice-transplantation tractor targets 3,000 sales by FY27

• New Jewar plant to raise capacity to 3 lakh units

• BS5 may increase tractor prices by 10–15%

Escorts Kubota Ltd (EKL), a leading tractor manufacturer based in Faridabad, has shared new insights about its strong performance in South India. According to the company, Kubota tractors contribute nearly 25% of revenue from the southern region, while Powertrac tractors add around 15%. Overall, South India now accounts for about 30% of EKL’s agri-solution revenue. EKL currently operates three major tractor brands, Kubota, Farmtrac, and Powertrac.

Also Read: Escorts Kubota Unveils New-Generation KA6 & KA8 Rice Transplanters Across Seven States

Strong Presence in Key Southern Markets

In the agri-solution business, Tamil Nadu, Kerala, and Telangana are the top contributors. Kubota and Powertrac tractors are especially popular in Tamil Nadu, Karnataka, and Telangana, with Karnataka being the second-largest tractor market in India.

Rajan Chugh from EKL’s Agri Solutions Division highlighted the significance of the region, saying, “All five southern states play a major role in rice transplantation. We are also introducing horticulture solutions with Kubota and Farmtrac Atom tractors for crops like banana, sugarcane, and orchids.”

The company has also expanded its Polivakkam plant in Tiruvallur, Tamil Nadu, strengthening its presence in the south.

New Product Launches and Expansion Plans

EKL recently launched a Kubota rice-transplantation tractor imported from Japan, aiming to sell 3,000 units by FY27. To support future growth, the company has planned a new manufacturing plant near Jewar, close to the upcoming Noida International Airport.

• Land acquisition: Expected by March 2026

• Construction timeline: FY28–FY29

• Capacity expansion: From 1.7 lakh units to 3 lakh units in the next five years

The new facility will produce tractors, agri-solutions, and construction equipment, boosting EKL’s overall manufacturing capability.

Industry Trends and Challenges

Rajan Chugh also spoke about the rising trend in farm mechanisation. The sector has grown at a 14–15% CAGR over the past five years, supported by government schemes such as:

• Agri-Infrastructure Fund offering loans at 3% interest

• GST rationalisation, making farm machinery more affordable

However, the shift from BS 3/4 to BS 5 engines has increased tractor prices in the short term. EKL CFO Bharat Madan warned that this could raise costs by 10–15%, and the company has requested the government to delay BS5 implementation by one to two years.

Madan also noted that electric tractor engines under 35 HP could cost around ₹12–14 lakh, which may affect adoption.

Focus on Localisation and Technology Integration

EKL is actively integrating Kubota’s advanced technologies and working with global OEMs in India. The company is also localising key components, with its Faridabad plant emerging as a major hub for tractor and machinery manufacturing.

Also Read: Mahindra Lifts Tractor Growth Forecast, Predicts 12.2 Million Units by 2030

CMV360 says

Escorts Kubota Ltd is rapidly strengthening its presence in South India with strong tractor sales, new products, and major expansion plans. With rising demand for mechanisation and supportive government schemes, EKL is preparing for future growth while navigating challenges like rising costs due to BS5 norms. The company’s localisation efforts and new manufacturing plans underline its long-term commitment to India’s agri sector.