ZETOR TRACTORS a.s. today signed a memorandum about the cooperation with VST Tillers Tractors Ltd., a traditional Indian tractor manufacturer. The aim of the cooperation is the development of a new tractor designed primarily for the Indian market. Both companies will also seek ways to export new product to other Asian and African countries.
The agreed cooperation is based on ZETOR medium-term strategy with the aim of diversifying its operations and entering new markets. The Indian market is one of the world's largest markets with 688,000 tractors sold annually (data from 2018). Moreover, ZETOR tractors have historically good reputation in the country. From 1960s to 1980s, ZETOR exported tens of thousands of tractors to India, and subsequently ZETOR tractors were manufactured under the license by HMT company.
Since 2014, ZETOR has been represented in the market by its subsidiary ZETOR INDIA, which is responsible for strengthening the brand's position in this area. Taking years of experience, ZETOR and VST strives to develop a tractor with more than 36 HP. Production would then take place directly in India.
“ZETOR was looking for a strong local partner with a good knowledge of the Indian market and we are very pleased that we have agreed on cooperation with VST Tillers Tractors. VST is number one in the segment of tractors up to 30 HP and agricultural cultivators in India. We expect this cooperation will lead to restore ZETOR position on the Indian market,” says Martin Blaškovič, Chairman of the Board of Directors of ZETOR TRACTORS a.s.
Like ZETOR, VST Tillers Tractors Ltd. has a rich tradition dating back to 1967. “Since the very beginning, our goal has been to acquire the best technology for Indian farmers. Thanks to the memorandum, we will be able to do this in the higher horsepower segment as well,” adds V. K. Surendra, Chairman of VST Tillers Tractors Ltd.
Besides the new cooperation with VST Tillers Tractors Ltd., another result of ZETOR market diversification strategy is the project of supplying tractor sets to Russia, launched in 2017. For 2020, there is a contract signed for the delivery of several hundred tractor sets.