The electric tractor sector in India is beginning to gain traction, although it remains in the early stages of development compared to other segments of the electric vehicle market. According to JMK Research & Analytics, the Indian market currently has a cumulative total of 127 registered electric tractors, with most units being used internally by manufacturers or in pilot projects.
Market Overview
India, traditionally a major producer of diesel tractors, has seen these vehicles account for approximately 7.4% of the country’s annual fuel consumption. Diesel tractors, crucial for agriculture, are responsible for a significant portion of greenhouse gas emissions, adding urgency to the shift towards electrification. The diesel tractor market has seen a compound annual growth rate (CAGR) of 8.29% from FY2016 to FY2024, highlighting its substantial presence.
In contrast, the electric tractor market is still emerging. As of FY2024, only a small fraction of electric tractors have been registered, mainly consisting of imported models and a few domestic prototypes. The major players in the electric tractor segment include Mahindra, International Tractors Ltd. (Sonalika), and Escorts Kubota, with Mahindra leading in terms of contributions to registered units despite its models still being in the R&D phase.
Electric Tractor Development
Electric tractor models in India are predominantly in the prototyping phase. Companies like Sonalika and AutoNxt Automation have developed and tested several electric tractor models, such as the Sonalika Tiger Electric and AutoNxt X45H2. These models feature battery capacities ranging from 11 kWh to 35 kWh and offer varying power outputs and charging times. For instance, the Sonalika Tiger Electric has a battery capacity of 250-350 AH and requires up to 10 hours for a full charge.
Regional Deployment
The adoption of electric tractors has been concentrated in agricultural states such as Haryana and Punjab, which together account for 39% of the total registrations. Haryana, in particular, has been proactive, offering incentives under its state EV policy to encourage the adoption of electric tractors.
Challenges and Recommendations
Several challenges hinder the widespread adoption of electric tractors in India:
- High Upfront Costs: Electric tractors are priced between INR 7 lakh and INR 14 lakh, compared to INR 4 lakh to INR 10 lakh for diesel models. This cost disparity may deter potential buyers.
- Lack of Charging Infrastructure: Limited charging stations and frequent power outages in rural areas impede the practical use of electric tractors.
- Limited Consumer Awareness: Farmers are often unaware of the long-term benefits of electric tractors, including lower operational costs.
To overcome these barriers, JMK Research recommends several measures:
- Policy Support: Including electric tractors in the upcoming FAME-III policy and providing state-specific incentives could help reduce the cost gap and stimulate demand.
- Emissions Norms: Implementing stringent emissions standards could drive the transition from diesel to electric tractors.
- Tax Reductions: Lowering the tax rate on electric tractors could make them more competitive with diesel models.
- Financial Incentives: Reducing interest rates on loans and offering subsidies on electricity could make electric tractors more affordable.
Conclusion
India’s shift from diesel to electric tractors represents a significant opportunity to reduce emissions and enhance sustainability in agriculture. Although the electric tractor market is still in its infancy, the potential for growth is substantial. By addressing current challenges and leveraging favorable policies and financial incentives, India can accelerate the adoption of electric tractors, paving the way for a greener agricultural future.
