Delhi: Mahindra & Mahindra (M&M), which has
a 26.5 per cent market share, in the domestic tractor
market is undertaking an aggressive product strategy to
maintain its position.
Anand Mahindra, vice-chairman and managing director, M&M
announced during a press conference that M&M had become
the first Indian tractor unit to achieve sales of one
million units in a year. He also announced that launch
of two new 25-horse power (HP) models, 235 DI and 245
DI, priced at Rs1.95 lakh and Rs2.20 lakh respectively.
He said the company was working on more rollouts.
could include the high horse power tractors from the Horizon-III
range or compact tractors for which the company is conducting
a feasibility study to introduce them in India. These
may be launched in the Indian market within the next year.
M&M currently exports the Horizon-III tractors under
which it has tractors in the 65-70 HP range.
H3 models have been launched in the US and have been successful,
according to M&M executives. The officials said the
US operations of the company, established seven years
ago, managed to sell 10,000 units last year clocking a
turnover of $100 million.
also plans to produce a 120 HP tractor under the range
between the next 1 or 2 years and is contemplating entering
the lower end of the market, though officials did not
divulge what the lowest power tractor the company was
officials said the Indian tractor market grew by more
than 45 per cent during the first half of the current
financial year and is expected to close the year with
growth in the region of 28-30 per cent. The bullishness
in the domestic tractor industry is helped by better availability
of credit in rural areas they said.
J Davasia, M&M''s executive director and president,
said M&M''s recent acquisition and joint venture with
Chinese tractor maker, Jiangling Motor Co''s tractor business
would be M&M''s low-cost manufacturing base. The Chinese
company would distribute M&M''s Indian made tractors
in the large and growing Chinese market and also export
to the US though its successful American operations.
He said the total tractor market in India is expected
to return to its 2001
volumes of 250,000 units per annum in the next two year.
The current financial year is expected to close with overall
industry sales of 230,000 units.