CNH Announces USD 50 Million Investment in India 2024 with Launch of 105 HP Tractor in May

According to a CNH India official, the Italian-American off-road construction and agriculture company CNH intends to invest up to $50 million in the farm machinery market in India this year and introduce a 105 horsepower tractor in May.

The company CNH, which manufactures and distributes agricultural tools and equipment under the New Holland brand, intends to sell 1,000 baler machines (used for stubble management) this year and will concentrate on the compact range of tractors with less than 30 to 40 horsepower (HP). 

At the moment, CNH India holds a 4% market share in the country's tractor industry and is well-represented in the 45–50 HP tractor range.

The country's agriculture industry has a lot of promise, according to CNH India and SAARC Country Manager and Managing Director Narinder Mittal, who spoke with PTI. The business plans to augment its market share to 8% in the next four years.

Official Statement

CNH India and SAARC Country Manager and Managing Director Narinder Mittal said, "We plan to invest about $40-50 million in the current calendar year in the agriculture segment, including the programme investment. Out of which, $25-30 million will be invested in the tractor business alone.”

According to Mittal, the company is developing a particular tractor model with more than 45 horsepower and a new engine for increased fuel efficiency as part of the program investment.

Regarding a new launch, Mittal stated that a larger tractor with 105 horsepower is scheduled for release in May of this year. This tractor is employed for heavy application and bailing.

“The new model is likely to be launched by the end of 2025,” he added.

“At present, the company is importing bigger tractors of more than 100 HP to meet the growing demand for baler and ridge machines in the country,” Mittal said.

In 2023, CNH India sold over 840 small square balers as compared to 450 the year before. Additionally, 50 large round balers were sold by the company in 2023, an official stated.

Agricultural residue is compressed by balers into manageable, transportable balers. While big/round balers, which cost around ₹2 crore per set, require tractors with horsepower more than 100, small square balers, which cost about ₹11–12 lakh per unit, may be operated with tractors that are already in use. 

The company is based in Pune and produces small balers; however, by mid-year, it plans to localize some components that it imports. Giant balers are imported by the company.

Within the agricultural sector, CNH India operates a 60,000-ton-per-year tractor manufacturing plant in Greater Noida, Uttar Pradesh, and a harvester manufacturing plant in Pune, Maharashtra.

With more than 3,400 employees, CNH has three legal entities across the nation, each specializing in financial services, construction vehicles, and agriculture and farm machinery.

The tractor business generates about 71% of the total revenue. In 2023, CNH India's total revenue was estimated to be $1 billion.

“At present, the company is importing bigger tractors of more than 100 HP to meet the growing demand for baler and ridge machines in the country,” he said.

"We expect that we should be touching 1,000 balers this year," he said, adding the company is selling balers in Punjab, Haryana, Uttar Pradesh, and parts of Madhya Pradesh.

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