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M&M Expanding Global Footprint With New Tractor Facility in Brazil

Share Product Published - 27 Jul 2022 by Tractor Junction

M&M Expanding Global Footprint With New Tractor Facility in Brazil

The largest tractor market leader Mahindra & Mahindra is planning to set up a tractor assembly plant in Brazil in view of its global expansion strategy, after successfully targeting the US and Turkey markets.

M&M, the biggest manufacturer of Arjun and Nova tractors saw a rise in demand of these tractors almost doubling and thus has decided to install a local assembly line in Brazil to expand its global positioning for meeting more demands — clarified Hemant Sikka, President for Farm Equipment Business at Mahindra & Mahindra.

The tractor market giant sells approx. 54,000 tractor units in Brazil each year. They acquired 5.2% of market share in Brazil in a very short period of time.They see Brazil as a breadbasket of the world as the country is turning into the biggest food grain exporter to the world. 

The company compiled its sales report and could see increasing demand for their products into South Africa. Up next, this agri giant would be seen penetrating into South America and African markets.

Talking about long term vision, M&M wants to penetrate largely into Western Europe and Southeast Asia in coming years, which could be more possible with the help of the new generation K2 platform from Mitsubishi Agricultural Machinery and Armatrac brand of Tractors from Erkunt in Turkey.

At present, a third of the company's turnover is generated from its total international business. In FY-22, they sold 38000 tractors globally. And Japan and North America let alone help the brand bank billions of dollars of revenue.

Talking about their current international positioning, they have a total 16% global market share. In a global market of 2.3 million, they sell approx. 3.8 lakh units (which is 90% from India).

From the past 7 quarters, the brand is seeing positive growth from its international subsidiaries and would continue to do so by covering more target markets, adding new generation tractors and farm equipment.

As far as Indian market is concerned, the agri giant is expanding its capacity of Zaheerabad and Nagpur subsidiaries, as they are believed to be major export locations.

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