Sonalika the tractor manufacturing giant from the house of International tractor Limited has been successful in hosting a Joint Venture Agreement with Shandong Luyu Heavy Industry Co., entering the world’s greatest automobile market China.
China is presently the greatest haven of the Automobile Industry in general, and now that Sonalika has entered the global market of China, it is a great feat worth mentioning. The deal that costed about 400 Million USD has brought about a crack in the development strategies of Sonalika’s Competitors.
The Joint Venture Agreement, was able to secure a special provision for Sonalika with which it would be setting up new Assembly Plants for Engines at China. The deal has brought about a revolution in the Tractor Industry specially at India, since Sonalika has been one of the largest exporters of tractors in India.
ITL, the parent company of Sonalika presently has an impeccable presence in more than 120 countries and is being the novel feature of the age-old tractor manufacturing industry.
In an interview with the managing Director of Sonalika, Mr. Deepak Mittal said “China market has enormous potential for our range of tractors and with our association with Shandong Luyu Heavy Industry Co. Ltd, we are confident of providing farmers in China with the best-in-class technology at the competitive price point.”
Seeing from the Chinese point of view, China has the Second Largest Market for the Tractor in the World, and the Chinese officials thereby believe, this deal would not only open avenues for Sonalika’s tractor in the Chinese Market but also be an advent of new and efficient technology in the Chinese Tractor Industry.
As PTI quotes it in the words of Yang Shao Jie, the Founder and Chairman of Shandong Luyu Heavy Industry Company, “We believe this JV will be able to penetrate a deep range of Sonalika tractors in China and also help Shandong Luyu to offer engine technology of Sonalika to its customers.”