How Is There An Huge Opportunity For Tractors In The Country?

 

How Is There An Huge Opportunity For Tractors In The Country?

Tube Investments of India's (TII) electric vehicle arm, TI Clean Mobility (TICMPL), is set to launch at least three electric tractors during this fiscal year. TICMPL believes that the tractor segment is ripe for disruption due to favorable cost economics in battery-powered products. The company will focus on what it calls “the productive end of the EV spectrum—three wheelers, tractors and medium and heavy commercial vehicles,” where there are tangible and economic benefits for the customers/owners.

autorickshaw, ‘Montra,’ across the southern regions. Since cost economics are the same for electric three-wheelers and electric tractors, the company is betting on e-tractors after three-wheelers.

“We foresee a huge opportunity for tractors in the country due to supportive government policies for farm mechanisation and green energy programmes,” said MAM Arunachalam (Arun Murugappan), Executive Chairman of ₹7236-crore TII in the company’s latest annual report. Tractors in India are majorly powered by diesel engines which are an increasing source of carbon emissions and criteria pollutants. Electric work vehicles can be fundamental to green cultivating, helping the rancher and the climate.

As per the organization, e-work vehicles can forestall the arrival of carbon dioxide, the primary driver of air contamination and environmental change. The acquisition of Hyderabad-based Cellestial E-Mobility has enabled TII to design and build e-tractors from a ground-up architecture, leveraging the company’s frugal engineering and application expertise.

“In tractors, we have plans to introduce 3 different variants in four-wheel drives for different user segments. Work on the production facilities for the tractor is underway at Apex Park in Chennai, Tamil Nadu, with the vehicles slated for launch in this fiscal,” said Mukesh Ahuja, Managing Director of TII.

Its upcoming e-tractor is being designed as a cost-effective, pollution-free, and maintenance as well as a noise-free product that will run on swappable, rechargeable batteries that can be charged within two hours from a domestic power source and can be driven for 6 hours before needing a recharge.

“Even though electric tractors require much higher purchase costs, the TCO analysis shows that the cost gap over a ten-year period is minor even when electricity costs and opportunity costs are assumed to be at the upper bound. Subsequently, electric farm trucks could be extremely cost-cutthroat in the event that a few motivations can be given," as per a record (October 2022) of the Global Board on Clean Transportation.

The 10-year TCO of the electric farm market was about ₹31.1 lakh, while that of the diesel rendition is under ₹30.2 lakh. Fuel cost is the significant part of the two assortments, trailed by vehicle buy and supporting expenses. However, the cost gap between electric and diesel tractors can be bridged with consistent incentives provided for EVs, including the FAME II scheme, State-level incentives, 5 percent GST, and discounted insurance. With these sops, e-tractors can reach cost parity with diesel models or even be less expensive on a TCO basis, it stated. 

As per gauges, the worldwide electric farm market was worth over $120 million in 2021. It is normal to reach $300 million by 2030 with a build yearly development rate (CAGR) of 13.1 percent between 2022 and 2030. TICMPL's entrance into the electric farm truck market is supposed to support development in the area and assist with driving the reception of electric vehicles in India.