Editor's Note: This article has been updated with corrections in the second paragraph to Rajesh Jejurikar's title as well as Mahindra North America's market share in the 0-120 horsepower segment.
To establish Mahindra Tractors as a global brand, Mahindra & Mahindra (M&M) is looking to double its business in the U.S. market to $1 billion by 2020 compared to $547 million earned during the 2017 financial year.
Rajesh Jejurikar, president, Farm Equipment, said that Mahindra North America is currently is number three in market share in the U.S. in the 0-120 horsepower segment. Other than expanding its dealer base, the company is also investing in brand, technology, distribution centers and people in an effort to reach its target, Jejurikar said.
He added that this is part of the company’s larger global plans and wants 50% of the total revenue of the farm equipment division to come from global operations by financial year 2019 vs. 30% in 2015.
To achieve this turnover, the company is looking to target the $150 billion global farm equipment opportunity of which $90 billion is the non-tractor market and feels that the company will not only cater to the entire farm value chain, but also go beyond tractors.
M&M’s U.S. tractor business has posted sales increases for the past 3 fiscal years, starting with $357 million in FY2015, $504 million in FY2016 and $547 million in FY 2017. In October 2017, the company launched a series of products to target the higher horsepower market and also expanded its distribution channel from 400 to 550 dealers in the U.S. market, Jejurikar said. He added that the company entered the Mexican market in July 2017 with a retail finance tie up with DLL, which it had done in Brazil in October 2016.
In order to increase its global footprint, the company acquired a 33% stake in Japan-based Mitsubishi Mahindra Agricultural Machinery, a 35% stake in Finland based Sampo Rosenlew and also acquired Turkey based Hisarlar and Erkunt. Through December FY2017, Mahindra’s domestic tractor sales were up by 16% and exports increased by 7% year-over-year.
January 2018, Ag Equipment Intelligence.