Escorts Kubota Targets Market Rebound with Fresh Strategy

Escorts Kubota Ltd. (EKL), a leading name in agricultural and construction equipment, is doubling down on strategic product launches and a sharper regional focus to reclaim its position in a market shaped by cyclical swings and evolving demand patterns.

Despite a marginal drop in retail market share—from 10.07% in 2023-24 to 9.92% in 2024-25, according to the Federation of Automobile Dealers Associations (FADA)—the company remains confident that this is a temporary dip. EKL attributes the shift more to industry cycles than heightened competition. “Yes, market share has declined to a certain extent,” said Neeraj Mehra, Chief Officer, Tractor Business Division, Escorts Kubota Ltd. “One of the key reasons is the industry swing, which has significantly affected EKL’s share.”

Still, the fundamentals remain strong. EKL's tractor sales increased by 1% in 2024–2025, from 114,396 to 115,554 units. Additionally, domestic sales increased by 1.6% to 110,563 units. In the meantime, the company sold 30,581 tractors in the agri-machinery segment, an increase of 0.7% from the previous year. Revenue from this segment was up 0.4% to Rs 2,181.5 crore, while EBIT margin improved to 12.6%.

A key factor in EKL’s forward-looking strategy is its product innovation. Recent launches under its Promaxx and Powertrac brands have gained early traction in select markets. “Promaxx phase one is doing well, and in the states where it has been introduced, Farmtrac’s market share has grown,” Mehra shared. “Although the growth is marginal and it’s still early days, we are seeing positive trends.”

The roadmap ahead includes a fresh wave of new models. “With the recent launch of Kubota models and the wetland series under Powertrac slated for the end of the second quarter or early third quarter, we anticipate growth in the southern and eastern markets where paddy cultivation is prominent,” Mehra said. “Initial results should start showing from Q4, but the real game-changer will be next financial year.”

This localized approach is central to EKL’s strategy. Rather than promoting all its brands—Farmtrac, Powertrac, and Kubota equipment—uniformly across India, the company is leveraging each based on regional demand and historical performance. “The focus is on strengthening our weaker markets, not necessarily with all brands together,” said Mehra. “For instance, in the southern region, we don’t need to appoint Farmtrac dealers. Strengthening or adding Kubota and Powertrac dealers there will help grow EKL’s overall market share.”

Dealer network expansion is being fueled by the introduction of new Escorts Kubota equipment, which opens up opportunities in untapped geographies. “The introduction of new products is also enabling us to appoint dealers in previously untapped white spaces,” Mehra added. EKL currently supports its numerous brands, such as Kubota, Farmtrac, Powertrac, and Escort, through a strong nationwide network of 1,600 dealers.

The second phase of the wetland series and Promaxx phase two are part of the upcoming product pipeline and are anticipated to have a major impact in the upcoming fiscal year. “We have more launches lined up for next year,” Mehra said. “The product pipeline is strong, and we expect to see our market share grow in our five weak markets.”

With its diversified presence in tractors, commercial vehicles, and construction equipment, Escorts Kubota is positioning itself not just to ride out the current downturn but to emerge stronger. “We expect this swing to taper off in the coming months,” Mehra noted. “The industry began its growth cycle around September last year, and we should definitely see improvement and a rebound in market share in the upcoming quarter.”

Escorts Kubota is well-positioned to reorient its growth trajectory and solidify its position in the Indian machinery marketplace as it relies on innovation and strategic regional deployment.

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