Case New Holland or CNH Plans to Target Mainstream Category in India

The leading European tractor manufacturing company, Case New Holland or CNH, is planning to target the mainstream tractor market in India. It's ready to compete with local players like M&M, Escorts, and TAFE Group. CNH has the vision to double its market share and has already started working to develop a range of 25-40 HP tractors. This new category will offer prominent entry-level tractors for Indian buyers to widen its range and bring new customers.

The managing director, Raunak Varma of CNH Industrial India, told in the given interview with ET that the company is interested in investing Rs 1000 in manufacturing, supplier capacity, and new product development activities. This company has also planned to invest in financial service expansion to notice incremental growth. Mr Raunak Varma added that by not participating in the core market, they were not doing justice to shareholders and the company. Hence, they plan to develop a range of 25-40 HP tractors that are very specific to farmers' needs.

CNH has over two decades of presence in the Indian tractor market. And this company is already profitable, with annual sales of Rs 6,500 crore. Hence, all the investment made on mainstream tractor manufacturing projects will be self-funded, Mr Raunak added. Apart from being a global leader in the auto sector, this company is also willing to grow its market share in the farm industry. Recently, it strengthened its 45 and 49.5 HP tractor categories to widen options to CNH buyers. And by coming up with new technology in Sub-30 HP tractors, it will complete its entire product variants.

CNH desires to double its tractor manufacturing capability to 1 lakh units. It has already achieved a manufacturing capacity of 65,000 units by this April. And now, it plans to expand its manufacturing capacity to 75,000 by the end of 2023. So, it can easily scale manufacturing capacity to 1 lakh units smoothly. CNH has witnessed the fact that India will serve the domestic and international market with its tractors.