Escorts Kubota Limited has broken ground on a ₹2,000 Crore Indo-Japanese 154-acre greenfield manufacturing facility at YEIDA, Uttar Pradesh, near Noida International Airport.

The project marks a major expansion of the company’s manufacturing footprint and is aimed at increasing tractor and construction-equipment production for India and global markets. Also read the Escorts Kubota Tractor Sales July 2026 blog at Krishi Vikas.com.

A ₹4,500 Crore Manufacturing Ambition

The overall project involves an investment of around ₹4,500 crore, with the first phase accounting for more than ₹2,000 crore.

Located at YEIDA near Jewar, the facility is expected to strengthen the company’s manufacturing capabilities while supporting technology development, employment and the wider industrial ecosystem in Uttar Pradesh. This makes the facility more than a conventional capacity-expansion project. It is being positioned as a strategic manufacturing base for the company’s next stage of growth.

₹2,000 Crore Investment in Phase 1

The first phase of the Jewar project involves an investment of more than ₹2,000 crore. The larger project has been associated with an overall investment of around ₹4,500 crore, to be developed in phases. The 154-acre facility will add substantial manufacturing capacity.

Phase-1 Capacity

• 60,000 tractors per year
• 15,000 construction-equipment units per year
• ₹2,000+ crore investment
• 154 acres of manufacturing area

The scale of the planned capacity makes the facility an important part of Escorts Kubota’s future production strategy.

Key Figures

Parameter	Figure
Greenfield plant area	154 acres
Phase-1 investment	₹2,000+ crore
Overall project investment reported earlier	₹4,500 crore
Phase-1 tractor capacity	60,000 units/year
Phase-1 construction-equipment capacity	15,000 units/year
Escorts Kubota FY26 tractor volume	1,33,670 units
FY26 tractor-volume growth	15.7% YoY
FY26 domestic tractor sales	1,26,994 units
FY26 domestic growth	14.9% YoY
FY26 tractor exports	6,676 units
Export growth	33.8% YoY
FY26 operating revenue	₹11,472.8 crore
FY26 EBITDA	₹1,513 crore
FY26 EBITDA growth	28.5% YoY
FY26 tractor market share	~10.9%
FY25 tractor market share	~11.8%
Current India ranking	4th-largest tractor manufacturer
Strategic target	Top 3 by 2030

A Significant Increase in Tractor Manufacturing Capacity

Escorts Kubota sold 1,33,670 tractors in FY26, according to company-reported figures. Against this, the new plant’s Phase-1 capacity of 60,000 tractors annually is equivalent to around 45% of the company’s FY26 tractor sales volume. This additional capacity gives the company considerable room to increase production as demand grows in India and overseas markets. The facility is therefore not simply being developed to meet current demand. It is being created with future volume expansion and exports in mind.

15,000 Units of Construction-Equipment Capacity

The plant will also have planned annual capacity for 15,000 construction-equipment units in Phase 1. This expands the scope of the project beyond tractors and strengthens Escorts Kubota’s manufacturing capabilities across both agricultural machinery and construction equipment.

Supporting the Next Product Cycle

The new manufacturing capacity comes alongside an expansion of Escorts Kubota’s tractor portfolio.

The company is preparing products including:

• Farmtrac ProMaxx 2.0
• Kubota MU4201
• New Digitrac models
• Kubota MU4502
• Kubota MU5002

These products are part of the company’s effort to expand its presence across different tractor segments and applications. More manufacturing capacity will give Escorts Kubota greater flexibility to scale these products as market demand develops.

Building India as a Global Manufacturing Base

A major objective behind the Jewar facility is to strengthen India’s role in Kubota’s global manufacturing network. Escorts Kubota’s tractor exports already increased significantly in FY26. The company exported 6,676 tractors in FY26, compared with 4,991 tractors in FY25.

That represents: 1,685 additional tractors and approximately 33.8% year-on-year export growth.

The company’s future strategy includes expanding exports further, including plans to enter the North American market. This makes the Jewar plant strategically important for both domestic production and international shipments.

Three-Year Growth Direction

The Jewar facility is expected to support this progression by providing additional production capacity. The company’s strategy around the new facility can be broadly viewed across three stages.

FY27: Product Expansion

The immediate priority is to strengthen the product portfolio and target approximately 1 percentage point of annual market-share gain.

FY28: North America

The company plans to expand into the North American market, creating another export opportunity for its India-based manufacturing operations.

FY29: Manufacturing and Global Exports

The focus then shifts towards scaling manufacturing and increasing global exports.

Why the Jewar Location Matters

The plant is being established at YEIDA in Uttar Pradesh, close to Noida International Airport and connected to the Yamuna Expressway. This location provides access to major industrial and logistics infrastructure and can support the company’s long-term manufacturing and export requirements. The proximity to an international airport is particularly relevant as Escorts Kubota seeks to increase its global business.

₹4,500 Crore Project, ₹2,000+ Crore First Phase

The investment figures surrounding the project represent its phased development. The broader project has been associated with an investment of approximately ₹4,500 crore, while the first phase currently being developed involves more than ₹2,000 crore. This phased approach allows Escorts Kubota to build capacity progressively while aligning future investments with market demand and business growth.

What the Project Means for Escorts Kubota

The Jewar facility brings together three major objectives:

• Higher manufacturing capacity
• A wider product portfolio
• Greater export potential

With 60,000 additional tractors of annual Phase-1 capacity, 15,000 construction-equipment units and an investment exceeding ₹2,000 crore, the facility represents a significant increase in Escorts Kubota’s manufacturing capability. At the same time, the company’s export growth and planned entry into North America indicate that a larger share of this capacity could eventually serve international markets.

Exports Are Already Growing

Escorts Kubota’s export performance provides an indication of the company’s international ambitions. In FY26, the company’s tractor exports grew 34% year-on-year to 6,676 units. The new manufacturing investment could provide additional capacity to support this export growth, particularly as the company looks to enter new international markets.

India–Japan Partnership in Farm Mechanisation

Escorts Kubota Limited ₹2000 Crore Plant at Jewar also highlights the growing importance of India–Japan collaboration in manufacturing and agricultural technology. Kubota brings global engineering expertise and technology, while India offers a large agricultural market, manufacturing capabilities and growing export potential. Together, this creates an opportunity to develop products that are relevant to Indian farming conditions while also meeting the requirements of international markets. The Jewar project therefore represents not just a new factory, but a broader vision of India becoming an important global manufacturing and engineering hub for agricultural machinery.

The Bigger Picture

Escorts Kubota Limited ₹2000 Crore Plant at Jewar, project is ultimately a bet on India as a manufacturing and export base for agricultural and construction equipment.

The numbers underline the scale of the move:

• 154 acres of land
• ₹2,000+ crore Phase-1 investment
• 60,000 tractors/year capacity
• 15,000 construction-equipment units/year capacity
• 6,676 tractor exports in FY26
• 33.8% export growth
• ₹4,500 crore broader project investment

With the facility now moving from planning to execution, the next phase will be about converting this manufacturing capacity into higher production, stronger exports and greater market presence. For Escorts Kubota, Jewar is not just a new plant—it is the manufacturing base for its next phase of growth in India and overseas.