Following hot on the heels of a deal between fellow Indian tractor maker TAFE and Japanese-firm Iseki; the joint venture between Kubota and Escorts (60%:40%) will operate as Escorts Kubota India Ltd.
The two partners are not only planning to share technology but are also investing around €38 million in a new tractor plant at Escorts HQ at Faridabad, in the northern Indian state of Haryana. Expected to begin operations in January 2020 and reach full capacity by the middle of the year, the new tractor plant will have an initial capacity of 50,000 units a year.
Sold by Kubota and Escorts in India through their separate distribution networks, the aim for both companies is to take a leading position in domestic and export markets in the medium to long term. Under the joint venture, Escorts tractors will be exported through the Kubota global distribution network in specific markets as mutually agreed.
More than 700,000 tractors were sold in India this year. One of the world’s largest markets in terms of volumes, over 80% are in the 31-50hp bracket. Well known for its Powertrac and Farmtrac brands (up to 90hp), Escorts recently previewed India’s first autonomous and electric tractor prototypes.