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The new tech centre aims to speed up EV development, enhance proprietary technologies, expand testing capabilities, and foster global partnerships.
VST Tillers & Tractors, a key manufacturer of farm equipment and tractors is all set to scale up its R&D functions. It has plans to set up a Global Tech Centre at Hosur in Tamil Nadu.
This new tech centre will speed up EV innovation and develop proprietary technologies. It will enhance testing capabilities and encourage global partnerships. Positioned as the firm's main R&D hub, it will focus on electric powertrains, battery technologies, and advanced driver assistance systems. The centre shall handle the development, testing, and validation of advanced, reliable, and safe electric vehicles.
The company will invest around ₹100 crore in setting up the global R&D centre in phases. Over the last three-four years, VST has invested ₹100 crore, said Arun V Surendra, Chairman, VST Tractors & Tillers, a VST Group of Companies firm, while presenting the latest annual report of the company. These back-to-back investments in R&D would help the company build new solutions for farmers by keeping track of their changing needs, he added. The Bengaluru-based firm is developing at least 10 new products, including electric vehicle models, to meet market demands.
The Chairman also highlighted the company’s dedication to expanding its footprint in emerging markets. In April, VST established a wholly-owned subsidiary, VST Americas Inc., in the US to address market needs for tractors and farm machinery. This move creates new growth opportunities for the company. Products introduced by VST are expected to enter the US market by FY26.
VT Ravindra, Managing Director of VST in 2020, told investors that the company has started developing products exclusively for the US market. This is unlike its entry into Europe, where, in 2016, VST entered with compact products. These met the EU regulations under the 'VST Fieldtrac' brand.
To further consolidate its position in North America, VST has established a step-down subsidiary, VST Fieldtrac LLC, in the US as well. With more than 40 countries, VST is present in Europe, Asia, and Africa. The international business share of VST increased from 4% in FY20 to 8% in FY23 and 13.5% in FY24. It posted an operating revenue of ₹968 crore in FY24, down from ₹1,006 crore in FY23, while profit after tax rose to ₹122 crore in FY24 from ₹92 crore.
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