Mahindra plan to set up tractor manufacturing plant in US
Seeking growing demand for Mahindra products in the country, Mahindra USA is plan to set up a greenfield manufacturing facility for tractors in the US in the next three-five years.
“It makes sense down the line to have a factory in the US. The numbers are already there to have a factory in the US,” Mahindra USA President and CEO Mani Iyer said when asked about expanding operations.
The company will also move to the bigger segment of tractors — up to 160 hp — with the setting up of the new facility, he added.
“We already have invested a lot, whether in brand, technology, distribution points, dealers and people. The number of products being made for the US market alone is very high. It will call for more localisation,” Iyer said.
The current facility is running out of space as it has tripled over the last three years alone, he added.
The company, which generates revenue of around $600 million annually, is a major player in tractors ranging up to 120 hp. It is third in terms of market share in the segment, just behind the likes of Kubota and John Deere.
The firm has been growing in the range of 20-30 per cent in the US and now has a market share of around 12-13 per cent in the up to 120 hp tractor segment.
Mahindra USA plans to have over 40 launches this year that will include new models and refreshes of the existing tractor line-up. It gets all the major parts such as engines, transmissions, clutches and the like from India, Japan and South Korea.
The company aims to ramp up its sales network across North America and is eyeing Latin American countries, including Brazil, for future growth too.
It has nearly 550 dealers in the US, which would be scaled up to around 750 over the next 2-3 years. It also has five distribution centres in the country and one in Canada.