India's First ARAI-Certified Electric Tractor Takes the Spotlight at PM Modi's Sanand Visit
When Narendra Modi toured Murugappa's new Sanand semiconductor plant on 4 July, a red Montra E-27 — India's first certified electric tractor — was parked centre-stage, a sign of how seriously Indian industry now takes farm electrification.
The short answer
At the inauguration of CG Semi's chip-packaging plant in Sanand, Gujarat, fellow Murugappa Group company Montra Electric showcased its E-27 — India's first ARAI-certified electric tractor — to the Prime Minister. The 27-HP machine claims up to 70% lower running costs than diesel, putting farm electrification on the same national stage as India's semiconductor push.
The moment
A tractor on a semiconductor stage
On 4 July 2026, Prime Minister Narendra Modi inaugurated CG Semi's G1 OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat — a roughly ₹7,600-crore chip-packaging plant led by CG Power, a Murugappa Group company. Amid the semiconductor milestone, a fellow Murugappa company drew the Prime Minister's eye: Montra Electric, whose Chairman Vellayan Subbiah walked Mr Modi through the group's electric-mobility line-up. Taking pride of place on the booth was a red Montra E-27 electric tractor — a reminder that the same conglomerate betting on chips is also betting on the electrification of the Indian farm.
The machine
What the Montra E-27 actually is
Launched in November 2025 at EIMA Agrimach India, the E-27 is billed as India's first ARAI-certified electric tractor. It delivers 27 HP-equivalent power and 90 Nm of torque from a permanent-magnet synchronous motor, drawing on a 22.37 kWh lithium-iron-phosphate (LFP) battery that Montra rates at about 4.5 hours of work and a roughly 2 hour 15 minute charge. Buyers get an 8F+2R side-shift transmission, a dual-speed PTO (540/1000 rpm) and a 720 kg hydraulic lift, in both 2WD and 4WD. It is priced from ₹10.75 lakh ex-showroom and, at launch, was sold through 17 dealerships across 10 states.
Agriculture is the largest consumer of tractors, which makes electrification essential at scale.
The economics
Why electric could pay off on the farm
Montra's pitch to farmers is running cost. The company claims the E-27 can cut operating costs by up to 70% against a comparable diesel tractor, and estimates savings of roughly ₹10 lakh over five years once diesel and reduced maintenance are accounted for — alongside quieter, zero-tailpipe operation. As Montra Electric Tractors CEO Harish Prasad frames it, "agriculture is the largest consumer of tractors, which makes electrification essential at scale." The caveats are familiar to any EV buyer: a higher sticker price than entry diesel models, rural charging access, and whether a single charge covers a long day of heavy fieldwork.
The bigger picture
Murugappa's clean-mobility bet
The E-27 sits inside TI Clean Mobility, a Tube Investments of India subsidiary whose Montra Electric brand already spans three-wheelers, small and heavy commercial vehicles, and now tractors. Putting a farm EV on the same stage as a semiconductor plant is a deliberate signal — that India's industrial ambitions and its agricultural base are meant to advance together. What to watch next: charging and service networks in farm districts, financing that closes the upfront-price gap, and whether early adopters see the promised savings in the field.
Why it matters
Tractors are the backbone of Indian farm mechanisation, and diesel is one of a farmer's largest recurring costs. A homegrown, certified electric tractor with credible savings signals that clean farm power is moving from concept to showroom.