The TREM V rules require major changes to engine design and emission systems, making it costlier and complex for manufacturers.
04 Aug 2025 | 10840 Views | By Yukta Mudgal
In a move designed to promote regulatory consistency and reduce emissions, the Tractor and Mechanization Association (TMA) has recommended that new emission standards for tractors specifically exempt models ranging from 25 to 50 horsepower (HP).
Bharat Madan, Whole Time Director and Chief Financial Officer, Escorts Kubota Ltd. (EKL) who ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
In a move designed to promote regulatory consistency and reduce emissions, the Tractor and Mechanization Association (TMA) has recommended that new emission standards for tractors specifically exempt models ranging from 25 to 50 horsepower (HP).
Bharat Madan, Whole Time Director and Chief Financial Officer, Escorts Kubota Ltd. (EKL) who also chairs the Finance Committee at TMA, told Autocar Professional that the proposed recommendation is likely to be accepted by the government.
"The government is considering TREM-V implemention below 25 HP and above 50 HP tractors, as per our (TMA's) recommendations and is expected to take a final decision on this, likely by middle of August," Madan said. In India, the tractor market is dominated by models with less than 50 HP, whereas developed markets like Europe see greater demand for higher HP tractors, typically above 50.
To reduce emissions and improve fuel efficiency, the central government is pushing for the adoption of TREM-V emission norms. Currently, Indian tractors above 50 HP comply with TREM-IV norms, while the majority — those below 50 HP, still operate under the older TREM-IIIA standards. These norms, modeled on European regulations, are aimed at curbing carbon emissions.
However, the TREM V rules require major changes to engine design and emission systems, making it costlier and complex for manufacturers.
With the changes in emission norms, OEMs are likely to recalibrate their R&D and product strategies across the spectrum. For EKL, this coincides with its broader ambition to become a globally integrated agri-machinery player, leveraging both Japanese engineering and Indian manufacturing scale.
Escorts Kubota Gears Up for Global Push
Aligning with the regulatory evolution, EKL is sharpening its focus on global markets, particularly with differentiated strategies across horsepower segments. "Our export strategy is clearly bifurcated; low-HP models are finding traction in developing markets, while high-horsepower tractors are targeted at Europe, where stricter emission compliance is already in place,” Madan said.
The company is also eyeing growth in its domestic market share, with new product introductions scheduled to drive momentum starting next quarter. While the company currently derives a significant chunk of its revenue from exports, Madan said the pipeline of new products is expected to tilt the balance more toward domestic sales in the coming quarters increasing market share.