Now Reading: Escorts Kubota sees tractor growth slowing in FY27
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Escorts Kubota sees tractor growth slowing in FY27
Escorts Kubota expects India’s tractor industry to shift to mid-single-digit growth in FY27 after nearly 20% growth in the first four months, as a high base, uneven monsoon and rising farm input…
The Story in Brief
Escorts Kubota expects India’s tractor industry to shift to mid-single-digit growth in FY27 after nearly 20% growth in the first four months, as a high base, uneven monsoon and rising farm input costs weigh on demand. CFO Bharat Madan told ET Auto that some months could post year-on-year declines in the second half. The company is considering a price increase in the second quarter to partly offset commodity inflation.
Escorts Kubota expects to break ground in August on its Rs 4,500 crore Uttar Pradesh plant after taking possession of the land. The first phase will produce 60,000 tractors annually, with later phases taking capacity to two lakh units. The company plans new models across its three tractor brands and expects exports to remain flat in FY27.
The Indian Opinion
The easy story is either that tractor demand is booming or that rural demand is collapsing. Neither fits the evidence. Early growth came against a lower base, while rainfall patterns and input costs may now limit purchases. A price rise could protect margins but also test farmer demand. The Uttar Pradesh plant is a long-term bet, not proof of immediate sales. The next useful test is whether the industry can still deliver mid-single-digit growth by March 2027.
Source: auto.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
