Electric Tractors May Transform India’s Agriculture Sector

New Delhi, Oct 7 (KNN) With the Government of India (GoI) driving a national agenda for electrification, one crucial sector remains largely untouched: off-road transport, especially in agriculture.

Despite significant progress in the electric vehicle (EV) market, the agriculture sector lags behind in electrification. By the end of FY2024, cumulative EV sales in India reached 41,35,077 units. 

Major initiatives such as the PM E-DRIVE, Production-Linked Incentive (PLI) scheme, FAME 1 & 2, and the Electric Mobility Promotion Scheme (EMPS) have propelled the EV industry forward. However, the electrification of agricultural machinery remains limited due to complex challenges.

Annual EV sales in FY2024 surpassed 1.7 million, with over 55% attributed to electric two-wheelers (E2Ws), followed by passenger electric three-wheelers (E3Ws), according to a report by JMK Research and Analysis. 

While electrification in urban transport surges, industry leaders see the agriculture sector as the next frontier. "Most manufacturers, including us, have started to explore the potential of the electric tractor," said a senior official from VST Group, one of the key players in India's tractor industry.

Technological advancements and a focus on improving battery capacity are expected to drive growth in electric tractors. Arun Surendra, Chairman & MD at VST Group, anticipates significant movement within the next five years. 

“If you look at a five-year horizon, there will be a substantial percentage of sales in the e-tractor space,” he noted. India, despite being the world’s largest tractor manufacturer, has been slow to embrace electrification in agriculture. 

Companies like AutoNxt, VST, Sonalika Tractors, and Mahindra Tractors are working to change this narrative, with some even partnering with global firms like Monarch Tractors to push innovation.

However, as Kaustubh Dhonde, CEO of AutoNxt Automation, pointed out, challenges such as lack of charging infrastructure, high initial ownership costs, and inadequate financing persist. 

While India aims for EV adoption across sectors by 2030, the agricultural transition will require both industry innovation and government intervention.

The GoI’s off-road transportation push is seen as essential for agriculture's modernisation. Union Minister Nitin Gadkari recently called on tractor manufacturers to switch to electric alternatives, assuring that the government would provide necessary support. 

However, industry leaders like Surendra stress that beyond subsidies, fair raw material costs and strategic policy measures are crucial.

Despite the hurdles, the future of electric tractors looks promising. State governments are already offering incentives, and optimism is building for a breakthrough in this sector.

As the industry embraces this transformation, the shift will not only modernise agriculture but also contribute to India’s sustainable development goals.

(KNN Bureau)