Key facts
- Escorts Kubota, an India-Japan joint venture, is building a new plant in Uttar Pradesh, India.
- The plant will have an annual capacity of up to 60,000 tractors and 15,000 construction equipment units.
- Kubota plans to export higher-end tractors from India to Europe and the US.
- The company aims to double its Indian output by 2030.
- This expansion is part of a strategy to use India as a low-cost export base for Africa and beyond.
Farm and construction equipment maker Escorts Kubota, a joint venture between Japan's Kubota and India's Escorts, is significantly expanding its manufacturing capacity in India to boost exports to Europe, Africa, and North America. The company has begun construction of a new plant in Uttar Pradesh, India, with an initial annual capacity of up to 60,000 tractors and 15,000 construction equipment units.
Kubota President Yuichi Kitao aims to export higher-end, Kubota-branded tractors by incorporating the company's quality standards and leveraging India's low-cost supply network. This move is part of a broader strategy to turn India into a low-cost export hub, with the company targeting a doubling of its Indian output by 2030 and expanded shipments to Africa and other emerging markets.
The expansion reflects a wider trend among Japanese manufacturers to shift capacity toward lower-cost bases due to rising tariffs and supply chain risks. By concentrating base-model production in India, Kubota can defend its market share in price-sensitive segments while reserving its Japanese facilities for higher-margin specialized equipment. The company is also re-evaluating its materials supply chains to avoid chokepoints like the Strait of Hormuz.