Our Challenges
Developing Tractors with Specifications Tailored to the Indian Market in a Bid to Achieve Sustainable Economic and Agricultural Development
We entered the Indian market in earnest and began taking on the challenge of bringing prosperity to farmers and the economy.
India, with a population of approximately 1.35 billion,*1 has recently maintained one of the highest growth rates among the BRICs, or emerging economies, and is undergoing industrialization and urbanization. However, its main industry is agriculture, and it is an agricultural powerhouse, ranking first in the world in terms of the area planted for rice and wheat.*2 Its self-sufficiency rate for agricultural products (cereals) is over 100%, and exports of agricultural products support the country’s economy. *3
However, there are many challenges facing agriculture in India. India’s population is expected to overtake that of China to become the world’s most populous country. The question is whether India will be able to maintain its current rate of food self-sufficiency in the future. Production efficiency is also an issue. For instance, India has the world’s largest planted area for rice and wheat, but ranks second in the world in terms of production volume. Another issue is that many farmers here rely on human labor because it is cheap. Further cause for concern is the fact that the number of people engaged in agriculture is decreasing as more and more people are now choosing to work in the manufacturing and construction industries. Whether India can maintain a stable level of food production will have direct ramifications on the stable supply of food around the world.
Kubota entered the Indian market in 2008. Initially, the company began by developing markets where compact and lightweight tractors could be used, such as orchards, cotton fields, and paddy fields, with the aim of increasing brand recognition and building a dealer network. However, in India, tractors are used not only for farming but also for multiple purposes such as transportation, towing, and hauling. In order to play a truly useful role in India’s agriculture, it was vital for us to develop tractors suitable for India. This led to the start of a project to develop a new type of tractor. We thoroughly listened to and analyzed the voices of farmers to find out what kinds of tractors they were looking for. The answer we received was something completely different from the conventional rice farming market where Kubota has developed a business so far. In India, where tractors are used for multiple purposes all year round, high traction power is essential, and the tractor must be heavy enough to withstand this power. For Kubota, a company whose forte is in compact and lightweight tractors, this was a challenge that would take us into uncharted territory. In addition, the tractor had to be fuel-efficient and easy to operate to prevent fatigue due to daily use. We developed the MU5501 multi utility tractor in response to these requests. Farmers in India now use the MU5501 for a variety of purposes in their day-to-day lives. Furthermore, in 2019, Kubota established a joint venture with Escorts Limited, a major agricultural machinery company in India. Through the local production of low-priced, high-quality tractors, Kubota will increase its presence in India, which is said to be the world’s largest tractor market, and meet the needs of farmers around the world, especially those in emerging countries.
- *1Source: World Health Organization (WHO)―World Health Statistics 2020
- *2Source: United States Department of Agriculture (USDA)―World Agricultural Production (January 2017)
- *3Source: Ministry of Agriculture, Forestry and Fisheries―State of the Global Rice Trade 2016/2017
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