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In 1998, Kubota Corporation introduced the second generation compact tractors we call the New Grand L Series to the global market. This series comes in four basic models with the power-take-off (PTO) output ranging from 19.1 to 28.0 kW (25.6 to 37.5 HP). These models retain the compact size and high HP output, which were the basic concepts of the Grand L series first launched in 1994. The second generation Tractors are equipped with a newly designed hydrostatic transmission (HST), and a operator friendly cab with an improved air conditioner system and excellent visibility. These new generation compact tractors feature improved control and comfort which results in high efficiency and excellent productivity. This paper discusses the engineering steps, proven results and brings out noteworthy features of the Hydrostatic Transmission system and the climate-controlled cab of the New Generation Grand L Series tractors (Table.1).