Mahindra and Mahindra (Mahindra Farm Equipment unit) is planning to expand its global network by assembling a plant in Brazil after following US and Turkey markets.
Hemant Sikka, President of Mahindra Farm Equipment Business, said: M&M is the most prominent tractor market leader and the biggest manufacturer of Arjun and Nova tractors. As a result, we saw high demand for these tractors. So, the company decided to plant an assembly line in Brazil to expand its global position.
The Mahindra tractor market sells around 54,000 tractor units in Brazil annually. The company acquired a 5.2% market share in Brazil in a short span. As they see the country turning into the most significant food grain exporter across the world, the demand for Mahindra tractors is multiplying.
The company also gathered its sales report and saw a growing demand for its farm machinery in South Africa. After that, the company plans to head up in South America and Africa markets.
M&M also visions for the long term in Western Europe and Southeast Asia in upcoming years. This vision is more possible with the help of the new generation K2 platform from Mitsibushi Agricultural Machinery & Armatrac tractor brand from Erkunt in Turkey.
One-third of the Mahindra farm equipment company’s turnover is generated from its international business. In FY’22, the company sold 38000 tractor units in the international market. In addition, Japan and North America also help the brand in the company’s revenue.
Currently, the company have a good position in the international market and holds around 16% global market share. In the 2.3 million international markets, they sold approximately 3.8 Lakh units which are 90% selling from India.
For a few quarters, the company is seeing positive growth from its global subsidiaries. It would continue to cover more target markets, adding new generation tractors and farm equipment.
The company is also expanding their central export locations of Zaheerabad and Nagpur subsidiary categories.
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