Driving sustainability: Bengaluru-based Moonrider powers rural India with next-gen electric tractors

For Anoop Srikantaswamy (37) and Ravi Kulkarni (40), life was going on as usual. For the past 15-20 years, both Srikantaswamy and Kulkarni, along with their team, have been immersed in the automotive industry, focusing on the development of a diverse array of electric vehicles (EVs)—from two-wheelers to trucks. The team often gathered over cups of filter coffee, like many in Bengaluru, to exchange ideas while navigating their urban lives. That was until the day they decided to visit a sick friend, whose father was a progressive farmer.

This friend suggested that, since they were already working on electrifying various segments, they should also consider electric tractors. “If farm electricity is free, why aren’t there electric tractors? It would clearly benefit us.” This insightful conversation sparked the idea for Moonrider, and Srikantaswamy and Ravi Kulkarni founded the company in 2023. The company’s mission is to help farmers increase their income, reduce costs, and boost productivity.

That was a breakthrough moment for us, said Srikantaswamy, who is also the CEO of the company; Kulkarni is the COO.

“After that, we still had some concerns about electricity access in rural areas. So, we put together a small team and conducted initial research across various regions. What we discovered was that, over the past decade, the electricity grid has significantly improved in many of these areas. That realisation gave us the confidence to move forward and launch the venture,” added Srikantaswamy.

Over time, the founders of the Bengaluru-based startup Moonrider also discovered that states like Rajasthan, Himachal Pradesh, and Gujarat are actually energy surplus. In fact, many farms in these regions already have access to three-phase power lines.

“These insights were crucial and gave us the confidence to move forward with developing the vehicle. Over the past two years, we have made significant progress on the product front. Now, we offer a complete range of models—from 27 horsepower (HP) to 75 HP—and are planning to launch a 50 HP version soon,” said Srikantaswamy. Moonrider has an R&D facility in Bengaluru and a contract manufacturing facility in Nabha, Punjab.
India’s tractor space
The Indian agricultural tractor market is anticipated to reach a valuation of $7.92 billion by the end of 2025 and is expected to further grow to $10.95 billion by 2030, registering a CAGR of 6.7% during the 2025-2030 period, according to data from Mordor Intelligence.

“At present, e-tractors aren’t being sold in India because they aren’t actively retailed yet. In fact, this trend is observed globally as well. It’s important to understand that the tractor market is currently growing at a CAGR of around 6% to 6.5%, which essentially makes it a replacement-driven market,” said Srikantaswamy.

This suggests that every electric tractor sold will effectively replace a diesel-powered counterpart. “Tractors in India generally have an average lifespan of under 10 years, which creates a substantial annual replacement market; that’s the opportunity we’re targeting,” stated Srikantaswamy. He noted that the 40-60 horsepower segment dominates the Indian market, accounting for nearly 70% of total tractor sales.

Moonrider’s 75 HP tractor is primarily intended for export markets, especially regions like East Africa, though it also has some presence in Punjab and Haryana. As of now, the company’s 75 HP model is being tested by customers in Nairobi, and starting in January, it plans to ramp up deployment of our tractors across both Africa and India. “We think, at least in the year 2026, we would deploy somewhere between 600 and 1,000 tractors both domestically and globally,” said Srikantaswamy.

Experts note that India’s electric tractor market remains in its early stages. As of 2024, only about 127 electric tractors have been registered nationwide, with most deployed in pilot projects or retained by manufacturers for internal testing.

“While early developments have taken root in states like Uttar Pradesh, Karnataka, Gujarat, and Maharashtra, commercial adoption remains very limited. Leading players such as Mahindra & Mahindra (M&M), Sonalika, and Escorts have introduced prototypes, but these haven’t translated into widespread sales yet. The broader tractor market saw close to 800,000 new registrations in FY 2024-25, and only 16 of those were electric. For now, the segment is more about experimentation than full-scale deployment,” said Nikhil Dhaka, Vice President at Primus Partners.

Upfront cost is an issue
Experts believe that the Indian electric tractor segment holds long-term potential; however, cost continues to be a major hurdle at present. Overall, e-tractors are considerably more expensive than their diesel equivalents. This price gap becomes especially visible when we compare similar horsepower (HP) ranges:
Dhaka added that the higher upfront cost of electric tractors poses a significant affordability challenge, particularly for India’s small and marginal farmers. However, market growth is expected to be driven by declining battery prices, improved access to financing, and the growing economic viability of electric powertrains in agriculture. “With targeted subsidies, continued technological advancements, and stronger after-sales support, electric tractors could become an increasingly appealing option for farmers,” said Dhaka.

For most small and marginal farmers, these prices are simply out of reach, especially without affordable financing options, say experts. Then there’s the infrastructure issue: many rural areas still struggle with unreliable electricity, let alone having dedicated charging stations.

Srikantaswamy said that Moonrider has introduced several key innovations that have helped bring down costs of e-tractors. The company has developed its own battery technology and battery packs in-house and patented a battery system that can fully charge a tractor in just 30 minutes.

“Beyond hardware, all our software and electronics are also developed internally. This vertical integration is critical, especially because the battery pack alone accounts for nearly 40% of the total cost of an electric tractor. We have managed to bring our battery pack cost down to under $65 per kW-hour—about half the market rate. These innovations have allowed us to achieve price parity, meaning when we take our product to market, our pricing is within plus or minus 10% of conventional alternatives,” added Srikantaswamy.

Srikantaswamy explains that the 27-horsepower Simba from New Holland, recognised as one of the fastest-moving models, is priced at around Rs 7 lakh; in contrast, the Moonrider electric tractor is expected to be priced at approximately Rs 8 lakh.

“And another differentiation from a Moonrider’s standpoint is that what we are doing is, for the next 24 months, we are not opening up any dealerships or anything unlike other big players who have dealerships in almost all parts of the country. We have partnered with B2B players in the sense that there are rental field owners. We want to approach the market in a different way,” said Srikantaswamy.

Battery charging
Dhaka said that battery limitations also create hesitation. “Long charging times and concerns over battery life affect day-to-day usability during key farming seasons. Add to that a lack of awareness and trained technicians, and it becomes clear why adoption has been slow. While some states have rolled out incentives, a stronger policy push at the national level could go a long way in bridging these gaps,” added Dhaka.

Moonrider offers three types of charging options for its electric tractors. The first is standard charging, which can be done using a regular home socket, ideal for overnight charging. The second is an AC fast charger, allowing the tractor to be fully charged in about 2 to 2.5 hours.
“The third option is DC fast charging. Wherever DC fast charging infrastructure is available, the entire tractor can be charged in under 30 minutes. We are also collaborating with our B2B partners—many of whom operate in remote areas—to deploy DC fast chargers on-site. This will significantly improve access to rapid charging in rural and underserved regions,” he said.

Innovative solutions
One key reason e-tractors haven’t yet gained widespread availability is that the market requires either innovative solutions from start-ups or a decisive move by legacy manufacturers to launch electric models, said Srikantaswamy.

But for traditional OEMs, this presents a dilemma: because the market is largely driven by replacement demand, each electric tractor they sell risks cannibalising their own diesel sales. This makes the required capital investment a tough call, and therefore, most established players are reluctant to lead and prefer to let startups take the first steps in advancing the technology, he added.

“Compared to other sectors in the automotive space, the tractor industry tends to adopt new technology at a slower pace. That said, at Moonrider, we believe there is a window of about two to two-and-a-half years for us to enter the market and establish a new category,” said Srikantaswamy.

Expansion plans
Moonrider, earlier this year, had secured $2.2 million (approximately Rs 19 crore) in a funding round jointly led by mobility-focused funds AdvantEdge Founders and Micelio Technology Fund, with additional backing from a group of angel investors.

Srikantaswamy said the company is in its early stages, prioritising technology development and supply chain building and it hasn’t yet generated revenue. He added, “We are not in the market, but there has been significant inbound interest.”

Srikantaswamy also noted that for e-tractors to pick up pace, policy clarity is needed, particularly regarding subsidies. Extending 50-60% subsidies offered for diesel tractors to electric tractors would be a game-changer, he added.

Srikantaswamy highlighted that affordable financing is also crucial, as loans at 9% interest over 7 years may still be insufficient for large-scale adoption, considering 90% of tractors are financed. However, Srikantaswamy is optimistic that change is imminent.