M&M steps up production in China

Mahindra and Mahindra (M&M) is on course to touch annual production of 6,000 tractors in China by the end of the current fiscal.

"Production is being stepped up in the plant. We are currently producing 300 units per month, which is expected to reach 500 units by March 2006," Anjanikumar Choudhari, president (farm equipment sector) of M&M, said.

M&M holds 80% stake in the joint venture with Jiangling Motors, which formally commenced operations in July this year. The company had paid $8 million for its Chinese foray, and the Nanchang factory has a capacity of 12,000 tractors per annum.

Choudhari said M&M plans to use the facility as a manufacturing base for exports to other countries as well as gain a foothold in the Chinese market.

"We have already started exports from China," he said, adding that markets being targeted include the US and Australia. "We are selling tractors in the 20-30 horsepower range in the US," Choudhari said.