Escorts Kubota Announces Tractor Price Hike, Effective from June

Escorts Kubota, a prominent and well-respected manufacturer of top-tier tractors, is widely recognized for its outstanding craftsmanship.

Escorts Kubota Ltd, a prominent Indian engineering partnership, operates across three diverse segments: Escorts Agri Machinery, Railway Equipment Division and Escorts Construction Equipment.

Escorts Kubota’s Agri Machinery Business Division has disclosed its decision to institute an increase in the price of its tractor models, which will begin in June 2024. The move is designed to limit the effect of increasing costs.

Based on the official statement from Escorts Kubota, the time of the price adjustment will differ depending on factors such as tractor variants, models and regional considerations.

Recent reports indicate that Escorts noticed a decline in its market share in the fourth quarter of last year. The decrease was year-over-year by 47 basis points leading to an overall market share of 10.90%. This decrease can be attributed, at a minimum in part, to negative consequences caused by untimely rain.

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In the news, Escorts has recently disclosed that its market share in the national tractor industry fell in value by 47 basis points from year to 10.9% during the quarter that ended in.

Escorts attributed the decline partly to the negative consequences of rains that were not seasonal. Escorts predict for the beginning of this year’s quarter will remain fairly unaffected.

The company saw an overall decline in sales of 9.1%, while exports saw significant declines of more than 51% compared with the prior year.

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The March quarter was a success. Escorts Kubota produced a performance that was higher than expected. But its operating profits decreased by 6.2%, equating to Rs 236 crore. In addition, its margin saw a year-on-year decrease of 270 basis points.

Kotak Institutional Equities recently highlighted in a note to brokers that to recover its lost percentage of market shares, it has to implement a more aggressive pricing strategy that could affect the recovery of margins.