Escorts Kubota Limited (EKL), the Indian subsidiary of Kubota Corporation, has signed a land lease agreement as part of its plans to construct a new plant in Uttar Pradesh.
A groundbreaking ceremony was held to commence the site preparation.
The new plant will expand production capacity for tractors and other products for the Indian market, where demand is expected to grow over the medium to long term.
India is the world’s largest tractor market, with domestic sales exceeding 1 million units, and demand is expected to continue growing over the medium to long term. In 2022, Kubota acquired Escorts Limited, a major local company, as a subsidiary and renamed it Escorts Kubota Limited (EKL), and has since been working to expand its business.
While EKL will continue production at its plant in Haryana, it has acquired a site for a new plant in Uttar Pradesh in anticipation of future production capacity shortages due to medium- to long-term growth in tractor demand in India and expanding exports, as well as the need to increase production capacity to expand sales of cranes, backhoe loaders, and other construction machinery.
The new site covers an area of 623,000 m².
