In farm tractors, the available drawbar power, and Power Take-Off (PTO) power are generally lower than the engine power due to parasitic losses. These losses are caused by engine-driven auxiliary loads such as cooling fans, hydraulic pumps for power steering, alternators, etc. Minimizing these parasitic losses can increase the available drawbar power and PTO power, resulting in direct fuel savings by reducing fuel consumption. The continuous increase in fuel costs and the environmental impact of emitted gases from burned fuel into the atmosphere have necessitated the replacement of hydraulic power steering and mechanical fans with Electric Power Steering (EPS) and electric fans, respectively, to improve efficiency. The existing battery has been replaced with a higher capacity battery to provide power to the electric fan, electric power steering, and other electrical components. Additionally, the existing alternator has been replaced with a higher capacity alternator to meet the increased power requirements. The developed system was installed on a 45 hp 2-wheel drive tractor, and its performance was evaluated. Field trials were conducted at three testing sites (Sindhanur, Jaitsar, and Tindivanam), resulting in an average fuel efficiency improvement of 8.34%. Haulage trials were completed at MSPT (Mahindra SUV Proving Track), Cheyyar, and achieved an average fuel efficiency improvement of 8.5%.