Escorts Kubota to Strengthen Market Position with Plant Expansion

Escorts Kubota, the merged entity of India's Escorts and Japan's Kubota Corp, is facing challenges in gaining market share within the highly competitive Indian tractor market, five years after the merger.

Despite efforts, the company has consistently lagged behind the industry's growth. For FY26, Escorts Kubota's market share dropped to 10.8 percent from 12.9 percent in FY22, with a growth rate of 11 percent in domestic tractor sales, significantly lower than the industry's 20 percent rise.

However, the company saw a surge in exports, which grew by 54 percent, outpacing the industry's 8.7 percent increase. Both Nikhil Nanda, Chairman and Managing Director, and Deputy MD Akira Kato acknowledge that the turnaround has taken longer than anticipated.

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"We needed time to align the strengths of both sides—the agility, flexibility, and low cost of India, and the strengths of Japan—to create something new together," said Kato.

The launch of the Promaxx tractor under the Farmtrac brand has shown promising results, with demand exceeding projections in its initial rollout across four states.

However, the company’s market struggles stem from product limitations and geographical gaps. The Kubota brand’s limited lineup, reliance on imports, and cost disadvantages have led to a product offering that only addresses 40-50 percent of the market.

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"The issue is on the product side—the product lineup is not strong," the company admitted. To address these challenges, Escorts Kubota plans to launch new models this fiscal year and build a fully localized platform under Kubota to better cater to the diverse Indian market.