Escorts Kubota Plans Growth with New Tractors and Region-Focused Strategy

Escorts Kubota Ltd. (EKL) is focusing on new product launches and region-wise strategies to grow its market share. The company is dealing with some industry changes that have slightly impacted its position. EKL recently launched new models under the Promaxx and Powertrac brands. These are already showing good results in some markets.

“Promaxx Phase One is performing well. In the states where it was introduced, Farmtrac’s market share has increased,” said Neeraj Mehra, Chief Officer, Tractor Business Division, EKL. “Even though the growth is small and it’s still early, the signs are positive,” he added.

Tractor Sales and Market Performance

In the agri-machinery segment, EKL sold 30,581 tractors, showing a 0.7% growth compared to last year. The company earned Rs 2,181.5 crore in revenue, which is a 0.4% increase. The EBIT margin improved to 12.6%. In the full year 2024-25, tractor sales increased by 1%, rising from 114,396 to 115,554 units. Domestic sales grew by 1.6%, from 108,777 units to 110,563 units.

However, as per FADA (Federation of Automobile Dealers Associations), EKL’s retail market share slightly dropped — from 10.07% (89,832 units) in 2023-24 to 9.92% (87,628 units) in 2024-25.

Region-Specific Plans & Future Growth

The company is betting big on its new Powertrac wetland series and Kubota models, which are expected to launch by the end of Q2 or early Q3. These are aimed at southern and eastern India, where paddy farming is common. “We should see early results by Q4, but the major boost will come in the next financial year,” said Mehra.

EKL has a strong network with 1,600 dealers across India and 1,250 branches for its Kubota, Farmtrac, Powertrac, and Escorts brands. More product launches are planned for next year, including Promaxx Phase Two and the next stage of the wetland series. EKL aims to increase market share in five currently weak regions.

Focus on Regional Needs Instead of One Common Strategy

Instead of offering all brands everywhere, EKL is customising its approach. “In southern states, we don’t need Farmtrac dealers,” Mehra explained. “Adding Kubota and Powertrac dealers there will help EKL grow.” The company is also using its new products to expand dealership networks in untapped areas.“We are not trying to sell all three brands everywhere. It depends on which tractor fits best for the region and how strong the brand already is,” Mehra added.

While EKL’s market share dipped slightly, the company says this is due to industry cycles, not competition.“We believe this swing will ease soon,” Mehra said. Since September last year, the industry has started recovering. We expect our market share to bounce back in the coming quarter.”

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