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India’s agricultural sector, a cornerstone of its economy, is undergoing a significant transformation driven by technological advancements. The domestic tractor market, crucial for enhancing farming productivity, was valued at about Rs 73,000 crore in 2023 and is projected to grow at a CAGR of 6.5% over the next decade.

This growth is fueled by the increasing need for efficient farming solutions to meet the demands of a growing population and the pressures of climate change.  

“On the other hand, agriculture is grappling with escalating challenges—rising operational costs, labour shortages, and environmental concerns. Traditional farming practices are becoming increasingly unsustainable, prompting a need for innovative solutions,” Siddharth Gupta, Founder and CEO, VRD Motors, tells YourStory.

VRD Motors, which specialises in advanced farming technology, was founded by Gupta and his sister Simran Gupta, who has over 10 years of experience in AI software development.

The startup began its operations in 2019, officially launched in April 2022, and prototyped its products last January. 

The duo bootstrapped VRD Motors with Rs 2 crore invested from personal savings.

From robotics to agriculture

Gupta holds a BTech in Electronics and Telecommunication. He has worked as a scientist for DRDO and later worked in the 5G domain for Rockwood and Symphony. With five patents and two white papers to his name, Gupta’s passion for robotics and technology led him to address critical issues in farming.

“Witnessing the technological advancement challenges in agriculture, I realised that farmers needed more than just incremental improvements; they needed a revolution,” Gupta shares.

“I began this venture while in college, focusing on robotics for farming. I noticed two main issues: the lack of resources and data precision for farmers, leading to inefficiencies and potential losses,” he adds.

The team, which has 10 people, says it conducted extensive on-ground research, engaging with over a thousand farmers across 10-12 villages for about three years.

“We spent an additional 1.5 years developing the VRD Tractor, ensuring it met the needs and expectations of farmers. Our field trials demonstrated significant efficiencies, validating our approach,” Gupta recalls.

The soft launch and pilot testing of the VRD tractor began in early 2023, with over a hundred pre-orders already in place. For now, approximately 20-25 farmers currently use VRD tractors. The public launch is planned in November this year.

During research, the team observed the struggles of farmers with less than two hectares of land. These small-scale farmers faced high operational costs and had limited access to advanced machinery.

“My research revealed that farmers were suffering from inefficiencies due to outdated technology and high costs. This led us to develop solutions that could address these issues comprehensively,” he explains.

The global agricultural sector is facing significant challenges, including a projected shortfall of 200,000 skilled workers by 2025 and its contribution to approximately 24% of greenhouse gas emissions.

Electric autonomous tractors

In response to these challenges, VRD Motors introduced its flagship product—the VRD Tractor. These tractors are electric, autonomous, and powered by renewable solar energy and are priced between Rs 5-30 lakh.

“Autonomous tractors are set to revolutionise agriculture by performing tasks like plowing, sowing, and harvesting with minimal human intervention. Equipped with sensors and data analytics, these tractors offer real-time insights into soil health, crop conditions, and operational performance, enabling farmers to make informed decisions,” Gupta explains.

VRD Motors plans to introduce seven autonomous tractors ranging from 10 HP to 100 HP, equipped with advanced technologies like RTK (Real-Time Kinematic) for precise navigation and LiDAR (Light Detection and Ranging) for obstacle detection.

Gupta highlights that the traditional tractors, often diesel-powered, incur high operational costs. Farmers can spend up to Rs 5 lakhs annually on diesel and maintenance. “Additionally, the agricultural sector faces a significant labour shortage, with a projected global shortfall of 200,000 skilled workers by 2025,” he adds.

The startup says its technology will help farmers achieve up to a 30% increase in productivity while reducing carbon emissions by 56 metric tonnes annually.

VRD Motors says its farm management software offers real-time analytics and predictive insights, enabling farmers to make data-driven decisions.

Business model

VRD Motors has a dual revenue stream including the sale of tractors and subscription plans for the farm management software. 

“Our subscription plans provide continuous access to advanced analytics and remote monitoring capabilities,” Gupta explains. “This model allows us to support our customers while driving our growth and innovation.”

It operates its facilities located outside Pune, ensuring control over every aspect of production.

“We handle all technology development and manufacturing ourselves,” Gupta states. “This in-house approach allows us to maintain high standards of quality and innovation.”

The startup is gearing up for the nationwide launch of its VRD Tractor by mid-next year. As part of its expansion strategy, it plans to establish service centers in key agricultural regions across India. This infrastructure will provide comprehensive support and service accessibility to customers.

Way ahead

The India tractor market was valued at $1.9 billion in 2023, is projected to grow at a CAGR of 5.55% between 2024 and 2030, reaching a value of $2.6 billion, according to BlueWeave Consulting.

Meanwhile, the autonomous tractors market, valued at $1.5 billion in 2022, is projected to grow at a CAGR of over 18% between 2023 and 2032, as per Global Market Insight.

Looking ahead, VRD Motors aims to expand beyond India, with plans to enter international markets such as Europe and Africa by 2027. “This global expansion will be supported by ongoing investments in technology and production capabilities,”

“We are already in talks with international players and investors for expansion into Europe and Africa,” Gupta notes. “Our goal is to reach $1 billion in revenue by 2027, and our global expansion strategy is a key part of this vision.”

VRD Motors is in discussions with large multinational companies with farms, which are blue-chip firms involved in FMCG production.

The startup competes with major agricultural machinery players like John Deere, Mahindra & Mahindra, Kubota Corporation, and AGCO (Fendt), which offer a mix of hybrid, diesel, and electric tractors. 

“Our electric autonomous tractors offer cost-effective, environmentally friendly technology that tackles labor shortages and high operational costs. Combining sustainability, advanced autonomy, and comprehensive farm management solutions, we stand out in the agricultural machinery market,” Gupta notes.