Case New Holland, or CNH, a renowned European tractor manufacturer, is preparing to compete in India's mainstream market against local players Mahindra & Mahindra, Escorts, and TAFE. CNH has begun developing a line of tractors in the 25-40 hp category as part of its plan to double its market share in this segment.
These new tractors will allow CNH to provide an entrance point for potential tractor buyers into its brand while also broadening its range to attract new customers.
CNH Industrial India's managing director, Raunak Varma, told ET that the company wants to invest approximately Rs 1,000 crore in production and supplier capacity, new product development, and financial services expansion in order to grow locally.
"We are not doing the organisation and shareholders justice by not participating in the core of the market. We're making a strategic decision to create a portfolio specialised to the 25-50 horsepower range. We won't make a commoditized product; instead, we'll make an application-specific offering "Varma added.
With a sales of over Rs 6,500 crore and a presence in the country for over two decades, CNH is already profitable. Varma stated that all of the company's investments in India will be self-funded.
CNH is attempting to get into the developing farm market, in addition to playing a wider worldwide role.
The corporation had recently strengthened its offerings in the 45 and 49.5HP segments. CNH will be present in the complete product range accessible in the country with its entry into the sub-30 horsepower segment.
CNH wants to double its tractor manufacturing capacity to 1 lakh units, in addition to expanding its portfolio. The capacity was increased to 65,000 units in April, and CNH plans to increase it to 75,000 units by the end of 2023 before growing it up to 1 lakh units per year, given that India will serve both the domestic and export markets.
