New Delhi, August 22, 2026 (Yes Punjab News)
Escorts Kubota is planning a major expansion of its manufacturing capacity in India as the farm and construction equipment maker seeks to increase tractor exports to Europe, Africa and eventually North America, according to a report.
The company, jointly controlled by Japan’s Kubota and India’s Escorts, has begun work on a 154-acre greenfield manufacturing facility in Uttar Pradesh. The project is estimated to involve an investment of around Rs 2,000 crore and will be developed in phases.
According to a report by Nikkei Asia, Kubota President Shingo Hanada said India’s tractor market, at around 1.5 million units annually, is the world’s largest by a significant margin. The combined tractor market of the rest of the world is estimated at about 700,000 units a year.
The new facility is expected to become one of Kubota Group’s largest manufacturing sites globally. It will manufacture tractors, farm implements, construction equipment and engines for both domestic and international markets.
Escorts Kubota currently has manufacturing capacity for around 170,000 tractors and 10,000 construction equipment units annually. The first phase of the Uttar Pradesh project is planned to add capacity for up to 60,000 tractors and 15,000 construction equipment units each year.
The expansion will be financed through proceeds from an earlier preferential share issue to Kubota along with the company’s internal accruals.
Kubota entered the Indian market independently in 2008 and formed its joint venture with Escorts in 2018. Hanada said the earlier standalone approach had not delivered the desired results, while the partnership provides Kubota with additional resources to compete with lower-cost tier-2 manufacturers.
Escorts Kubota Chairman and Managing Director Nikhil Nanda said the commercial start date for the first phase has not yet been finalised, although the company intends to proceed aggressively with the project.
Hanada said exports from India are an important part of Kubota’s future strategy, with Europe currently the primary target market. India could also become a sourcing hub for components used in Kubota’s manufacturing operations in Japan and the United States.
Nanda said India’s relatively low farm mechanisation rate of 40-45 per cent, compared with around 90 per cent in the US and Japan, provides considerable scope for further growth.
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