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India can turn out to be the biggest market for Kubota said Kubota Global President!

India can turn out to be the biggest market for Kubota said Kubota Global President!


Japan's leading tractor maker Kubota Corporation which plans to invest Rs 9,400 crore in Escorts expects India to contribute $3 Billion in the coming decade as it intends to use the base to expand in India as well as other emerging markets.

Yuichi Kitao, President and Representative Director of Kubota Corporation told Ketan Thakkar & Satish John with Escorts, Kubota intends to increase its market share to more than double by 25% by 2025. With its biggest investment in Escorts, Kubota will expand its product line-up in both tractors and Agri-machinery that will help several countries like India, Southeast Asia, Africa, and Latin America, he said. Here are short edited excerpts:

 

What's the vision behind investing in Escorts?

The current industry players from emerging markets India and China are eager to pry their way into existing ones in North America, Europe, and Asian Countries with their economical products. So, we must fail their attempts to get ahead by providing best-in-class products. Seeing the current scenario and future growth potential of the Indian agricultural machinery market, we decided to invest in Escorts.

Kubota aims to capitalize on the strengths of both the companies and to cater to global markets from India.

 

How would you grow business with Escorts? 

In the new collaboration between Escorts and Kubota, we are equal joint partners and we'll control the company. I can rely on Nikhil Nanda to make Kubota and Escorts top players in the industry.

Escorts have the potential to produce products at low rates without compromising on the quality in India. Kubota can make products with quality and advanced technologies. And we will share our abilities for a better outcome and performance.

 

What are your expectations from the Indian market? 

We estimate that the Indian tractor market will grow into 1.2 or 1.3 million from current units that are around 8 lakh. Due to demand for low-cost and rugged tractors in Emerging markets, Kubota can increase production volume to over 1.4 lakh units in the next 10 years. So, India will come up as the biggest market for Kubota.

 

What about manufacturing electric tractors in the future? 

Escorts already has an EV tractor prototype and we are also into making the EV tractor as well as construction equipment of smaller size. We have possibilities to work on both these EV modules.

 

Will Kubota expand into construction equipment and railways, what's about Escorts’ presence? 

We are planning to collaborate on new products and it's not only limited to India but also other overseas markets.