Escorts Kubota Expands With ₹4,500 Crore Tractor Manufacturing Unit

19 Aug, 2025

The Yamuna Expressway Industrial Development Authority (YEIDA) has allotted 200 acres of land to Escorts Kubota Limited (EKL) for establishing a ₹4,500 crore tractor manufacturing unit in Uttar Pradesh. This project marks a major step in strengthening India’s role as a global hub for farm and construction equipment manufacturing.

Escorts Kubota Limited Signed an MoU with the UP Government

Escorts Kubota signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh on August 17, 2024, formalising the development of this state-of-the-art facility. The company has been allotted land in Sector-10 of YEIDA, highlighting the state’s commitment to industrial growth and employment generation.

Project Investment and Employment

Under this large-scale project, Escorts Kubota will invest ₹4,500 crore and is expected to create employment opportunities for around 4,000 people in a phased manner.

• Phase 1: An investment of ₹2,000 crore will go into building a tractor plant, commercial equipment plant, and allied facilities.
• Phase 2: The expansion will depend on market demand and the capacity utilisation of the first phase.

Focus on Domestic and Global Markets

The upcoming manufacturing unit will not only cater to the domestic tractor and farm equipment demand but also serve international markets. Escorts Kubota also plans to develop shared services for Kubota’s global R&D operations from India, making the country a central hub for innovation and technology in agricultural machinery.

Escorts Kubota: A Strong Indo-Japanese Partnership

Formed in 2019 as a strategic partnership between Escorts (India) and Kubota (Japan), Escorts Kubota Limited has steadily expanded its presence in the agricultural and construction equipment industry. With this new project, the company aims to manufacture:

• Tractors
• Engines
• Farm machinery
• Construction equipment

The venture positions India as a global manufacturing hub, reinforcing its contribution to the "Make in India" initiative.

Conclusion

The establishment of Escorts Kubota’s new manufacturing facility at YEIDA is not just a massive investment but also a milestone for India’s farm machinery industry. With a focus on innovation, global reach, and employment generation, this project reflects how Indo-Japanese collaboration is shaping the future of agricultural and construction equipment manufacturing in India.