To manufacture cheap machinery for sale in developing nations, the leading Japanese farm equipment manufacturer Kubota has tied up with Indian peer Escorts, according to a report by the Nikkei Asian Review.
As per the report, Kubota and Escorts have agreed to create a new brand ‘E Kubota.’
Under this brand, they will market tractors in Eastern Europe, Africa and other regions.
Tractors for sale in South Africa will be manufactured at Escorts’ factory in the Indian state of Haryana, while the manufacturing of tractors for Eastern Europe would take place in Poland.
As agriculture is becoming increasingly mechanized, the demand for pieces of equipment like tractors is expected to grow in emerging markets.
The presence of the key US and European agricultural equipment makers in relatively advanced economies led Japanese manufacturers to turn to emerging economies in order to capture the market share.