Auga Group halts development of hybrid Auga M1 tractor

The Lithuanian agricultural company Auga Group had been working on a 500-horsepower hybrid tractor: the M1. However, the company is halting the development of the Auga M1 tractor due to financial difficulties. At the front of the tractor is a combustion engine powered by (bio)methane gas, while behind the cabin sits a generator that produces electricity for the electric wheel motors. – Photos: Mark Pasveer

The Lithuanian company Auga Group is facing financial difficulties and is temporarily suspending the development of tractors. The company, which spans approximately 38,000 hectares, has been working on a hybrid tractor since 2018.

The Lithuanian agricultural company Auga Group has been developing its own hybrid tractor, the Auga M1, since 2018. The company announced that this project is temporarily suspended due to financial issues. The 38,000-hectare farming enterprise states that it will focus on activities that generate short-term revenue, such as growing crops, producing biomethane, and selling end products.

500 HP hybrid tractor

Over the past five years, Auga Group invested a total of €6 million in the development of hybrid and electric tractors. The most notable tractor is the Auga M1: a 500-horsepower hybrid tractor with four equally large wheels.

The tractor operates with biomethane gas cartridges, allowing it to run for about 12 hours on a single refill. A combustion engine and generator convert this gas into power for four large electric wheel motors. According to Auga Group, it is not feasible to commercialize the tractor using their own resources. The company is seeking external financial support.

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Auga Group manages approximately 38,000 hectares across Lithuania. The company uses these tractors on its own arable farms, fueling them with biomethane from its own biogas plant.

Partly returning to conventional farming

The agricultural company is facing financial difficulties, primarily due to a sharp rise in production costs over the past five years. The company attributes this mainly to increased employee wages. Additionally, it has reportedly received significantly fewer subsidies.

To cut costs in the short term, Auga Group is implementing additional measures beyond halting tractor production. For instance, the company is partially shifting from organic farming and livestock production back to conventional methods.