Trade deal with US offers opportunity to explore exporting tractors from India: Escorts Kubota CFO

Core Insights - Kubota Corporation aims to transform India into its growth engine as part of its mid-term business plan for 2030, focusing on business and projects from India as a key strategy aspect [1][5] - The India-US interim trade deal presents an opportunity for Escorts Kubota to explore exporting tractors to the US market, which is currently not being tapped [1][2] - The company is currently exporting from Japan, facing a 15% tariff, while the tariff for India stands at 18%, indicating a potential for competitive advantage if production shifts to India [2] Group 1: Business Strategy - Kubota plans to leverage India as a global hub for R&D, procurement, and production, aiming to enhance cost competitiveness and strengthen its supply chain [5] - The company sees the possibility of manufacturing tractors in India for export, which would be beneficial for the parent company [5] Group 2: Market Outlook - The tractor industry in India is expected to grow significantly, with a 23% increase recorded in the third quarter following a GST rate reduction [6] - Projections indicate that the industry could grow by approximately 30-35% in the March quarter, with momentum expected to continue through July-August before a high base effect impacts growth [7] - In the quarter ending December 2025, Escorts Kubota reported tractor volumes of 36,955 units, reflecting a 13.5% increase from 32,556 units in the same quarter of the previous fiscal year [7]