Escorts Kubota Calls for Subsidies to Boost Electric Tractor Adoption

Escorts Kubota Ltd is delaying the full commercial launch of its next electric tractor in India as it waits for government subsidy support to make electric tractors more affordable and viable for the market.

The company has nearly completed the development of its upcoming electric tractor, but a wider market launch will depend on government support for the segment. Jayagopal S., General Manager and Head of EV Systems Engineering at Escorts Kubota, shared the update while speaking at the India Clean Transportation Summit in Delhi on Wednesday.

"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," said Jayagopal S., General Manager and Head of EV Systems Engineering at Escorts Kubota.

Escorts Kubota Develops 35 HP Electric Tractor

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

The company has also developed a 35 HP electric tractor as the next-generation model. According to Jayagopal, the new tractor comes with a larger battery and has been developed based on feedback received from early customers.

Both electric tractor models can be charged using a standard three-phase home connection, which means customers do not require dedicated charging infrastructure.

Electric Tractor Price Remains a Major Challenge

The higher upfront price of electric tractors remains one of the biggest challenges for wider adoption.

According to Jayagopal, a 35 HP diesel tractor costs around ₹5 lakh, or approximately $6,000. In comparison, a similar electric tractor costs around ₹12.5 lakh, or $15,000. This means the electric tractor can cost around 2.5 times more than its diesel counterpart.

Jayagopal said customers who operate an electric tractor for at least eight hours a day can achieve a return on investment comparable to a diesel tractor. He added that profits can roughly double compared with diesel after the buyer crosses the three-year break-even period.

Escorts Kubota Says Subsidy Needed for Wider Electric Tractor Rollout

Escorts Kubota does not expect electric tractors to require a separate distribution network. The company's existing dealers can sell electric models, with additional training mainly required for after-sales staff dealing with EV-specific repairs.

"The electric tractor and diesel tractor ecosystem is not much different. Except charging, everything is the same."

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

Battery Swapping Not Practical for Tractors

Battery swapping was also discussed as a possible way to reduce charging downtime. However, Jayagopal said the technology is not practical for tractors because of the weight of the battery packs.

A typical electric tractor battery pack weighs around 250 kg, making it too heavy to swap safely in the field. He added that most tractors operate for less than 10 hours a day, providing enough time for overnight charging.

Where higher-capacity DC charging infrastructure is available, a fast charger can charge the battery from empty to full in around one hour, according to Jayagopal.

Escorts Kubota Seeks Government Support for Electric Tractors

Escorts Kubota has called for a dedicated government subsidy scheme for electric tractors, similar to the support already available for electric trucks and buses. The company has also suggested preferential lending rates and additional incentives for electric tractors, particularly when the tractor is registered in a woman's name.

Such measures, according to the company, could help reduce the price gap between electric and diesel tractors and make electric tractors more viable for Indian farmers.

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