Murugappa Group To launch 3 New Electric Tractors this fiscal

Tube Investments of India's engineering company, Tube Investments of India (TII), through its electric vehicle arm, TI Clean Mobility (TICMPL), is gearing up to launch three electric tractors in the current fiscal year. Recognizing favorable cost economics in battery-powered products, TICMPL believes that the tractor segment is ripe for disruption.

TICMPL's focus lies on the "productive end of the EV spectrum," targeting three-wheelers, tractors, and medium to heavy commercial vehicles. The company has already introduced a battery-powered passenger auto rickshaw called 'Montra' in the southern regions.

The move towards electric tractors is driven by promising government policies promoting farm mechanization and green energy programs. Diesel-powered tractors are significant contributors to carbon emissions and pollutants, making electric tractors a promising solution for sustainable farming practices.

Through the acquisition of Hyderabad-based Cellestial E-Mobility, TII gained the capability to design and build electric tractors from the ground up. Leveraging the company's frugal engineering and application expertise, TII aims to develop cost-effective, pollution-free, and low-maintenance electric tractors.

TICMPL plans to introduce three different variants of four-wheel-drive electric tractors tailored to 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. "In tractors, we have plans to introduce 3 different variants in four-wheel drives for different user segments (25, 35, and 55 hp). 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.

The upcoming e-tractor model will run on swappable, rechargeable batteries, enabling a charging time of two hours from a domestic power source. It boasts a range of six hours before requiring a recharge, offering farmers practical and efficient operation.

“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. Thus, electric tractors could be very cost-competitive if some incentives can be provided,” according to a document (October 2022) of the International Council on Clean Transportation.

While electric tractors initially entail higher purchase costs, the total cost of ownership (TCO) analysis over a ten-year period shows a minor cost gap compared to diesel tractors, even when factoring in electricity costs and opportunity costs. Incentives, such as those provided through the FAME II scheme, state-level incentives, a 5% GST, and discounted insurance, can bridge the cost gap and make electric tractors cost-competitive or even less expensive in terms of TCO.

Estimates suggest that the global electric tractor market was valued at over $120 million in 2021 and is expected to reach $300 million by 2030, with a compound annual growth rate (CAGR) of 13.1% between 2022 and 2030.

Tube Investments of India's foray into electric tractors showcases its commitment to sustainable farming practices and aligns with the global shift towards greener agricultural solutions. With the potential to revolutionize the farming sector, TICMPL's electric tractors have the capacity to drive both economic and environmental benefits for farmers and the wider community.

Tractor Junction also Offer a Monthly Subscription of Tractor Sales (Wholesale, Retail, Statewise, Districtwise, HPwise) Report. Please Contact us for the detailed report.

Subscribe our Telegram Channel for Industry Updates- https://t.me/TJUNC
Follow us for Latest Tractor Industry Updates-
LinkedIn - https://bit.ly/TJLinkedIN
FaceBook - https://bit.ly/TJFacebok