Key facts
- Kubota is constructing a new factory in northern India.
- The facility will manufacture tractors and construction machinery.
- This expansion is part of a strategy to double Indian production by 2030.
- The company intends to use India as an export base, particularly for Africa.
- Kubota acquired Indian firm Escorts in 2022, now Escorts Kubota, to leverage its low-cost manufacturing.
Japanese manufacturer Kubota is set to build its fifth factory in India, focusing on tractors and construction machinery, as part of an ambitious plan to double its output in the country by 2030. This expansion is strategically aimed at bolstering exports to markets such as Africa, where demand for affordable agricultural equipment is growing.
The company acquired Indian tractor maker Escorts in 2022, rebranding it as Escorts Kubota. This move has been pivotal, allowing Kubota to leverage Escorts' established low-cost manufacturing capabilities and distribution networks. Producing tractors in India is approximately 30% cheaper than in Japan, making it an ideal base for supplying cost-sensitive markets.
Kubota's president, Yuichi Kitao, highlighted Africa's agricultural potential, drawing parallels with India's development. The company anticipates Africa's annual tractor demand to increase from the current 24,500 units to around 30,000 by the end of the decade. Kubota aims to significantly increase its shipments to African markets, targeting 4,000 tractors annually within five years, a fivefold rise from current levels.