Kubota Corporation has announced that it has invested in an Indian tractor manufacturer, Escorts Limited (EL).

Through this investment, Kubota say they intend to increase its presence in India - the world’s largest tractor market - as well as its commitment to the competitive tractor market.

The tractor market in India is one of the world’s largest in terms of unit sales and Kubota expects it to expand further. In 2008, Kubota established Kubota Agricultural Machinery India Pvt. Ltd. as a foothold in the Indian market.

At present, local manufacturers are playing key roles there, and the company says they are all enhancing partnerships with foreign-affiliated manufacturers. In February 2019, Kubota established a joint-venture tractor manufacturing company with EL and mass production is due to start this July.

The competitive tractors which currently form the core of the Indian tractor market, are gaining popularity in other markets around the world, say Kubota. The manufacturer hopes to expand its global reach in those model markets by tapping into EL’s parts procurement networks and capability to reduce cost.

The total amount of investment which is expected to come from Kubota will be approximately 16 billion yen.

After going through the necessary procedures and subject to receipt of requisite approvals, the investment is likely to be completed by June 2020.

Going forward, Kubota aims to establish a joint research and development centre with EL to develop products that are optimised for the local market and shorten the development period.