Italian-American industrial vehicles maker CNH Industrial will invest more in India, especially in lower horse power products, over the next five years despite slow economic growth as it is an important strategic market for the firm, according to its CEO Hubertus M Muhlhauser.
As part of its five-year plan, the company will invest about USD 13 billion globally for product development in all segments, of which some investment will be made in India as well, he said without disclosing the country specific investment plan.
Muhlhauser said the company will launch construction equipment vehicle 'Crawler Escavator' next year in India.
Currently, the company has three manufacturing units in India, one for construction equipment vehicles brands CASE and COMPACTOR, while the remaining two units for farm vehicles brand 'New Holland' tractors and harvesters. It operates across 180 countries.
"India for us is a very important market not only as end-user but also as a manufacturing hub. Strategically, our facilities are placed in India. We see more investment especially in lower horse power products," Muhlhauser told reporters after unveiling the company's five-year strategy and investment plan on September 3.
CNH will focus on India market despite current slow economic growth as the company sees more potential in sub 100 horse power products, he added.
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On trade war, the company's CEO said, "It is not good. It prevents actual growth. As soon as we find solution to trade war, our growth will improve significantly in North America and Europe. We hope to find solution soon".
CNH Industrial agriculture division President Derek Neilson said the company aims to "double" its market share in India by 2024, leveraging on growing farm mechanisation.
The company's construction division President Carl Gustaf Gorannson said CNH will launch a new construction equipment vehicle 'Crawler Excavator' next year and will begin local production during the second quarter of 2020.
"India is a core key market and is growing rapidly in construction vehicle segment. India will be our focus," he added.
Gorannson also mentioned that the company will build on India supply chain efficiency and improve vendor base ecosystem.
CNH Industrial has a production unit of 'CASE construction equipment' used in general as well as road construction at Pithampur in Madhya Pradesh. The company is number one in terms of sales in 'Compactor' used in road construction, number two in 'Backhoe loader' used in general construction.
In agriculture segment, the company has one plant manufacturing tractors in Greater Noida, Uttar Pradesh, while another one for harvester in Pune, Maharashtra.
CNH Industrial also announced its plan to split its operations into two and list its truck, bus and engine division to streamline business. The remaining company will comprise of the tractor business and construction equipment division as well as special vehicles.
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