Kubota to Increase its Shareholding in the Indian Tractor Manufacturer Escorts Limited 

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Kubota has reached an agreement with Escorts Limited under which Kubota will increase its shareholding in the Indian tractor manufacturer. 

Escorts Limited is a major tractor manufacturer in the Indian market, reportedly the world’s largest tractor market in terms of unit sales. The company also manufactures and distributes construction machinery as well as other products.

The practice in India of utilising tractors year-round for carrying loads, in addition to usual agricultural work, means that the machines are designed to be highly durable with a basic specification and at reasonable prices.

With the aim of addressing market needs in India, Kubota strengthened its partnership with Escorts Limited, specialised in developing and manufacturing such tractors – referred to as ‘basic tractors’ – by establishing a joint venture manufacturing company in 2019 and through a direct equity investment in 2020. 

Kubota has decided to increase its shareholding in Escorts Limited, based on expectations for the basic tractor market to expand in emerging countries including India. The move will also utilise combined resources in an effective manner and further strengthen the partnership between the two companies. 

As a result of this, the collaboration will produce quality and affordable basic tractors utilising Escorts Limited’s knowhow in the sector and Kubota’s accumulated product development knowledge and capabilities. Kubota will also utilise both companies’ distribution networks by offering a wide range of product offerings, ranging from high-performance to basic tractors. 

By positioning Escorts Limited as an important foundation for basic tractors in the future, Kubota will consider developing and manufacturing of basic combine harvesters and construction machineries targeting India and other emerging markets.

The first tractors from the collaboration to be marketed in Europe will be available at the end of 2022.

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