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Murugappa Group plans to unveil 3 e-tractors in FY-2023
TI Clean Mobility (TICMPL), the
electric vehicle
division of engineering firm Tube Investments of India (TII), owned by the Murugappa Group, intends to introduce at least three electric tractors during this fiscal year because it thinks the tractor market is ready for disruption given the favourable cost economics of battery-powered products.The company TICMPL will concentrate on what it refers to as "the productive end of the EV spectrum—three wheelers, tractors, and medium and heavy commercial vehicles," where there are real and significant financial advantages for the users/owners.
In the electric
three-wheeler
category, the company has already made the battery-powered passenger autorickshaw "Montra" available in the southern regions.Since the cost economics for both electric tractors and electric three-wheelers are the same, the company believes that it is making a substantial bet on e-tractors as a successor to three-wheelers. According to MAM Arunachalam (Arun Murugappan), Executive Chairman of the $723.6 billion TII, "We foresee an enormous potential for tractors in the country due to favourable government initiatives for farm mechanisation and green energy programmes."
In India, diesel engines, a growing source of carbon emissions and other pollutants, are used to power most tractors. Electric tractors may be a key component of environmentally friendly farming, helping the farmer as well as the environment.
The business claims that e-tractors can reduce carbon dioxide emissions, which are a major contributor to both air pollution and climate change. By utilising the company's cost-effective engineering and application capabilities, TII was able to develop and construct e-tractors from the ground up thanks to the acquisition of Hyderabad-based Cellestial E-Mobility.
"For various user groups, we want to provide three alternative
four-wheel
drive options in tractors. The tractor's production facilities are being built at Apex Park in Chennai, Tamil Nadu, and the vehicles are expected to be introduced this fiscal year, according to Mukesh Ahuja, managing director of TII.Its future e-tractor will run on swappable, rechargeable batteries that can be charged within two hours from a home power source and can be driven for six hours before needing a recharge. It is being built as a cost-effective, pollution-free, maintenance-free, and noise-free device.
"The TCO study demonstrates that the cost disparity over a ten-year period is minimal even when power costs and opportunity costs are considered to be at the top bound, despite the fact that electric tractors need significantly higher purchase costs. Therefore, if certain incentives can be offered, electric tractors might be highly cost-competitive, according to a document from the International Council on Clean Transportation (October 2022).
The diesel tractor's 10-year TCO was less than 30.2 lakh whereas that of the electric tractor was around 31.1 lakh. Fuel prices are the main factor in both variations, followed by finance and vehicle purchase expenses.
However, persistent incentives offered for EVs, such as the FAME II plan, State-level subsidies, 5% GST, and subsidised insurance, can close the price difference between electric and diesel tractors. With these benefits, it was claimed that e-tractors might become cost-competitive with diesel versions or even less expensive over the long term.
The report made it clear that the TCO estimate for electric tractors was conservative since there were gaps in the data's availability and knowledge of the performance of actual tractors. In 2021, the market for electric tractors was expected to be worth more than $120 million. With a compound annual growth rate (CAGR) of 13.1% from 2022 to 2030, it is anticipated to reach $300 million.