Business EconomyPosted at: Nov 8 2025 10:58PM


Tractor, tiller sales soar post-GST: VST CEO

By BD Narayankar
Bengaluru, Nov 8 (UNI) The recent reduction of GST on smaller farm machinery from 12% to 5% has given a strong boost to rural mechanisation, making tractors and power tillers more affordable for small and marginal farmers, VST Tillers Tractors Ltd CEO Anthony Cherukara said.
"The GST cut has positively influenced the smaller HP machines. For small farmers, even one or two EMI savings make a huge difference. This reduction directly supports the affordability factor," Cherukara told UNI, referring to compact tractors and power tillers in the 12–20 horsepower range.
Highlighting the financial challenges faced by small farmers, he said, "For larger farmers, financing is easier. But for small farmers, accessing capital itself is a challenge. So this benefit matters a lot more to them."
The combined effect of the festive season and the GST cut has already reflected in market growth. VST’s power tiller sales more than doubled this October, from 1,700 units last year to over 4,000 this year.
The company expects to sell over 45,000 power tillers this year, up from 37,000 last year. Tractor sales are also projected to grow around 10% over last year’s 6,000 units.
Cherukara said small and mid-sized farmers are increasingly opting for higher horsepower tractors, both for their own fields and for rental income. To keep machines affordable, VST is developing modular equipment that can handle multiple crops, including carrots, turmeric, onions, and radish, through interchangeable attachments. The company has also partnered with Tamil Nadu Agricultural University to demonstrate new farm equipment in villages via the Krishi Vigyan Kendras network.
VST, which began as a joint venture with Mitsubishi in 1967, has evolved into an independent technology developer. The new VST Global Tech Center in Hosur, with a ₹100 crore investment, will serve as the hub for innovation.
The upcoming ‘CORE’ series, a hybrid between a power tiller and a compact tractor (13–20 HP), will offer the convenience of a tractor at almost the price of a tiller, including an electric version.
On the global front, VST has expanded to 40 countries, set up a European base in the Netherlands, and registered VST Tillers Tractors Americas Inc. in Delaware to tap the US market. Last year, the company sold around 1,500 tractors in Europe and aims to maintain the momentum.
Domestically, its Precision Components Division in Mysuru supplies Mitsubishi Heavy Industries and metro and railway projects in India and Europe, aligning with its China 1 strategy. The division is expected to generate ₹20 crore in revenue this fiscal and is also seeking aerospace certifications.
Cherukara expressed optimism about the rural economy, noting that demand in villages grows gradually but sustains longer than urban peaks. He stressed that agricultural productivity growth must remain above 4% to ensure food security.
"Mechanisation, crop diversification, and modern practices will drive the next phase of Indian agriculture. Mechanisation is no longer a luxury — it’s a necessity," he said.
UNI BDN
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Tags: #Tractor# tiller sales soar post-GST: VST CEO
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