Escorts Kubota Targets Market Share Growth Despite India’s Tractor Slowdown

Escorts Kubota expects to strengthen its position in India’s tractor market during fiscal 2027, despite an anticipated industry slowdown. The company aims to increase its market share through new tractor models, an expanded dealer network and strong demand in northern India. Its finance chief, Bharat Madan, said domestic sales could remain flat or rise slightly, even as overall industry volumes decline marginally.

India’s weak monsoon has affected agricultural activity, with rainfall between June and September recording a 12.6% deficit compared with normal levels. Escorts Kubota reported a 16.2% drop in domestic sales in September and a 10.9% decline in October. However, its April–October sales remained 6.2% higher. The company’s market share also increased to around 12.2% in the second quarter, supported by stronger volumes compared with the wider industry.

Rising commodity costs and pressures linked to the Middle East conflict have also affected manufacturers, prompting Escorts Kubota to plan tractor price increases of around 3% to 3.5% from mid-November. However, the company is prioritising sales volumes and may absorb some additional costs to protect demand. Meanwhile, rival Mahindra & Mahindra has also revised its industry outlook, highlighting continued pressure on India’s rural purchasing power.

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