Electric tractor startups struggle to form industry body or join existing associations, blocking access to policy influence and financing.
02 Nov 2025 | 6137 Views | By Yukta Mudgal
India’s electric tractor startups are pushing to form their own industry association, or gain entry into the established one. But both paths are proving difficult. Without representation, they remain outside key policy discussions, financing frameworks, and subsidy programs that could shape their future.
Startups like Montra Electric, AutoNxt, and ...
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India’s electric tractor startups are pushing to form their own industry association, or gain entry into the established one. But both paths are proving difficult. Without representation, they remain outside key policy discussions, financing frameworks, and subsidy programs that could shape their future.
Startups like Montra Electric, AutoNxt, and ShreeMarut have been developing electric tractors aimed at reducing emissions and fuel costs in agriculture. Yet, as they look to expand production, the absence of a collective industry voice has become a serious handicap.
The lack of association backing also makes financing difficult. Without an institutional framework or recognized body to interface with lenders, startups say banks are hesitant to finance electric tractor purchases.
"Not a single bank has said they will finance an e-tractor," said one founder on a condition of anonymity. "They finance every other electric vehicle, but not tractors yet."
Experts say that from the perspective of lenders and policymakers, the segment remains too small and untested. "Financing institutions rely on data and scale," said an industry expert. "A formal association could help generate that data and bridge trust between startups and regulators."
"Joining the Tractor Manufacturers’ Association (TMA) is essential," said one founder. "Without it, startups have no access to policy discussions or financing networks. But the entry conditions make it nearly impossible."
The TMA, which represents India’s major tractor manufacturers such as Escorts Kubota, Sonalika, and John Deere, requires companies to have at least ten years of operational history, a source revealed. Most electric tractor firms are only a few years old.
"A startup will die for sure, if not today, then tomorrow," said an industry source. "The TMA’s rule is that a company must be ten years old. The government’s rule is that there should be at least seven companies to form an association."
TMA did not respond to Autocar Professional’s queries at the time of publishing.
The government allows new industry associations to be formed if at least seven registered members apply together — a requirement that, in a young sector with only a handful of active players, is proving hard to meet.
"Are startups capable of organizing that many events and initiatives? Forming and promoting an association needs money too," said another founder.
Industry insiders say the lack of formal representation is one reason electric tractors remain outside subsidy programs. The PM-eDrive scheme, a revised version of FAME, currently supports electric two-wheelers, buses, and ambulances, but not tractors.
"Policy inclusion usually follows when there’s an organized body pushing for it," said a source familiar with the matter. "Right now, e-tractor startups don’t have that collective lobbying power."
For now, the electric tractor industry remains fragmented with a few innovators trying to establish themselves while struggling for a collective identity.
"The technology is ready, but the ecosystem isn’t," said a founder. "Without a seat at the table, we’re missing the very benefits that could help us grow."