M&M's Chinese JV commences operations

Mahindra & Mahindra's (M&M) chinese joint venture Mahindra (China) Tractor (MCTCL) commenced its operations today with the rolling out of the first tractor from its manufacturing unit.

"This strategic venture takes us one step closer to our ambition of becoming the world's number one tractor manufacturer," Anand Mahindra, vice chairman and managing director of M&M said in a release today.

MCTCL is a joint venture between M&M's 100% subsidary Mahindra Overseas Investment (Mauritius) (MOICML) and Jiangling Motor Group (JMCG).

MCTCL had acquired the tractor manufacturing plant with a production capacity of 12,000 tractors per annum from Jiangling Tractor Company, a subsidary of JMCG.

Mahindra has a majority stake (80%) in the JV entity and is investing $8 million out of the total investment of $10 million while the remaining share lies with JMCG.

MCTCL would cater to the Chinese domestic market with 18 to 33 HP vehicles under the Fengshou brand and 60 HP tractors under the Mahindra brand.

The plant would also export tractors to America, Europe and India to begin with, the release added.