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Electric tractors (PLI)

Government Schemes & Missions · Production incentives

What it is

Battery-electric tractors, supported not by a dedicated scheme but through the PLI for Automobiles and Auto Components, whose Advanced Automotive Technology categories cover tractors alongside two-wheelers, cars and commercial vehicles

Participation requires 50% domestic value addition. Models in the 25-60 HP range are in pilot use, typically with 20-30 kWh packs giving six to eight working hours

Impact on industries

  • Fit with Indian usage is genuinely good - most farms run tractors four to six hours a day, so a single overnight charge covers a working day on small plots
  • Running-cost case is strong at diesel near Rs 90-100 a litre, with total ownership cost 30-40% lower over six to eight years
  • Adoption is negligible - fewer than 100 electric tractors were registered nationally by 2024 against a fleet of over 9 million, on volumes near one million a year
  • Upfront price is two to two and a half times a comparable diesel model, which is the wrong direction for the most price-sensitive buyer in the vehicle market

Industries affected