M&M looks to reap Chinese harvest

To source sub-30 hp tractors from subsidiary Jinagling Co.

Mahindra & Mahindra plans to roll out a sub-30 horse power tractor in India from China's Jiangling Tractor Co, in which it had acquired 80 per cent stake two years ago.

The market for sub-30 hp tractors in India is estimated at around 15-16 per cent of the total annual volume.

Anjanikumar Choudhari, president (farm equipment) sector and member of M&M's management board, said: "As a segment this might be the smallest but it is definitely not something that can be sneezed at. With so many small farmers in the country, it is a segment we need to look at."

Although the 2.8 lakh units Indian tractor market is dominated by the 30-40 hp range tractors, M&M, with a 55 per cent market share, plans to consolidate its presence by spreading its portfolio to low-powered tractors.

"We already have sub-30 hp models and have a 27 per cent market share in the segment," Choudhari added.

The Jiangling tractor will be priced competitively. At present, the country's cheapest tractor is being sold by Delhi-based SAS Motors. The 22 hp tractor, Angad, is being imported from China and sold by SAS for Rs 99,000.

The next cheapest is 25-hp Yuva, sold by state-owned HMT last August, priced at Rs 1.85 lakh. The 24-hp Eicher tractor, retailed by Tafe since it acquired Eicher, is priced at about Rs 2.05 lakh.

Mahindra already has three models under 30-hp: Yuvraj, Bhoomiputra and Sarpanch and may be looking to expand in the same category.

Choudhari said few sub-30 HP tractors imported from China are being tested in India. "The soil conditions and usage pattern of tractors in India are very different. We have imported few fully built units from China for testing in Indian field conditions," he said. Haulage by tractors is one application that is unique to India.

It is, however, not clear whether M&M will import these tractors from China or make them in India.