Escorts Kubota is delaying the commercial launch of its next electric tractor in India, seeking government subsidies to make electric tractors more affordable for farmers. The company has nearly completed development of its new 35 HP electric tractor, but says policy support will be crucial for wider market adoption.
Escorts Kubota is calling for a dedicated electric tractor subsidy scheme, along with preferential lending rates and additional incentives, to narrow the significant price gap between electric and diesel tractors. Also read the Escorts Kubota Tractor Sales August 2026 blog at Krishi Vikas.com.
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.
“It is almost all 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.”
Escorts Kubota Develops 35 HP Electric Tractor
Escorts Kubota, a joint venture between the Escorts Group and Japan’s Kubota Corporation, already sells a 25 HP electric tractor in the US, primarily aimed at hobby farmers.
The company has also developed a 35 HP electric tractor as its next-generation model. The new tractor features a larger battery and incorporates feedback from early customers, according to the company.
Both models are designed to operate with a standard three-phase electrical connection, reducing the need for dedicated charging infrastructure.
High Upfront Cost Remains a Major Barrier
The biggest challenge for electric tractors in India remains their substantially higher initial purchase price. According to Jayagopal, a 35 HP diesel tractor costs around ₹5 lakh, while an equivalent electric tractor costs approximately ₹12.5 lakh. This puts the upfront price of the electric tractor at around 2.5 times that of a comparable diesel model.
However, the economics can improve for customers with high daily tractor utilisation. Escorts Kubota estimates that farmers operating an electric tractor for around eight hours a day could achieve a return on investment comparable with a diesel tractor. After the estimated three-year break-even period, operating economics could become significantly more favourable for electric tractors.
Existing Dealer Network Can Support EV Sales
Escorts Kubota does not see the need for a separate distribution network for electric tractors. The company’s existing dealers could handle EV sales, with additional training primarily required for service and after-sales personnel to address electric drivetrain and battery-related issues. The company believes much of the tractor ecosystem remains common between electric and diesel models, with charging infrastructure being the primary difference. Escorts Kubota is also incorporating telematics technology into its electric tractors. This enables remote diagnostics and software updates, allowing engineers to monitor and troubleshoot vehicles remotely.
Why Battery Swapping May Not Work for Tractors
Battery swapping is often proposed as a solution to reduce EV charging downtime. However, Escorts Kubota believes the approach is less practical for agricultural tractors. A typical electric tractor battery pack can weigh around 250 kg, making frequent removal and replacement difficult and potentially unsafe, particularly in field conditions. The company also points out that most tractors operate for less than 10 hours a day, allowing overnight charging to meet the requirements of many users. Where suitable DC charging infrastructure is available, Escorts Kubota says the battery can potentially be charged from empty to full in around one hour.
Escorts Kubota Calls for Dedicated EV Tractor Incentives
The company is seeking a dedicated government subsidy programme for electric tractors, similar to the incentives available for electric trucks and buses.
Escorts Kubota has also proposed:
- Preferential lending rates for electric tractor purchases
- Additional incentives to reduce the upfront cost
- Targeted support when tractors are registered in a woman’s name
- Policy measures that narrow the price gap between electric and diesel tractors
Krishi Vikas Take
Escorts Kubota’s position highlights the central challenge facing India’s electric tractor market: technology development is moving faster than purchase economics. While electric tractors can offer lower running and maintenance costs, the substantially higher upfront price remains difficult to justify for farmers with moderate annual tractor utilisation. Government intervention through purchase subsidies, lower-cost financing and targeted incentives could therefore play a critical role in creating early market demand. For electric tractors to scale beyond niche applications, the policy framework will need to focus not only on vehicle electrification but also on farmer affordability and utilisation economics. The industry’s next phase is likely to depend on how quickly these two factors converge.
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