Mahindra Unveils Bold Global Growth Plan: Bigger Tractors, New Tech & International Push

Key Highlights:

• Farm revenues grew 1.7x to ₹35,375 crore.

• OJA platform capturing strong US & Brazil share.

• Big push for >40HP and >50HP tractors in India.

• Electric, autonomous and flex-fuel tractors in the pipeline.

• Expanding farm machinery via a 2,300+ dealer network.

Mahindra & Mahindra, the world’s largest farm tractor maker, has announced an ambitious new strategy to strengthen its leadership in India and expand globally. The company shared its updated roadmap during its latest Investor Day, focusing on tractors, electrification, farm machinery, and global expansion.

Strong Foundation Built Over FY20–FY25

Mahindra’s farm business has already shown solid growth:

• Consolidated revenue grew 1.7 times, reaching ₹35,375 crore.

• Global tractor volume rose 1.4 times, hitting 4.33 lakh units.

• Farm PBIT surged 2.6 times to ₹4,947 crore.

• The farm segment contributed 39% to PAT and 32% to cash generation (post capex and investments) from FY21–FY25.

This strong performance sets the stage for the company’s next major leap.

Mahindra’s Four Growth Vectors

Mahindra’s new strategy is built around four main growth drivers:

1. Fortifying Domestic Tractor Leadership

Mahindra is upgrading and expanding its tractor portfolio to match India’s rising demand for larger, more powerful tractors. Market data shows:

• 40–50 HP tractors grew from 49% (FY20) to 64% (FY25).

• Tractors above 50 HP are expected to grow from 7% (earlier estimate) to 9% by FY30.

To meet this shift, Mahindra is leveraging its powerful dual-brand strategy:

• Mahindra – India’s No.1 tractor brand

• Swaraj – India’s No.2 tractor brand

The company is expanding its NextGen Portfolio, which includes:

• Yuvo Tech+

• Naya Swaraj

• Swaraj Protek

These tractors are built for toughness, low ownership cost, and heavy-load performance.

Favourable economic trends are also supporting the market, with profitability in cash and horticulture crops rising 5.6%, while tractor prices dropped 7.1% (as per the Tractor Price Index).

2. Global Expansion: OJA Driving International Growth

Mahindra is boosting its global presence through its “Building Momentum” initiative across the USA, Brazil, Turkey, and Japan.

USA Market

• OJA platform captured 8.5% US market share.

• In the sub-110HP segment (200,000 tractors annually), Mahindra reached a 10.4% share in sub-20HP tractors in Q4 FY25.

• Plans include expanding through 440+ dealers.

Brazil Market

• Sub-120HP market estimated at 40,000 tractors.

• Mahindra currently holds:

• 8% share in <120HP

• ~20% share in <50HP

Expansion plans include:

• Launching OJA and NOVO platforms

• A new High HP platform

• Setting up a new manufacturing facility

Mahindra also plans to globally launch:

• OJA Small Utility

• OJA Large Utility

• High HP Platform

3. Next Growth Horizon: Electrification & Autonomy

Mahindra is investing heavily in technology to create the next generation of farming solutions. The three main technology pillars are:

Electrification

• Development of Mahindra OJA Electric Tractors.

Autonomy

• Work is underway on Level 2 Autonomous Tractors to improve precision, productivity, and comfort.

Alternative Fuels

• Exploring Biodiesel blends, CNG, and Ethanol (Flex-Fuel).

Mahindra is also advancing farm services through:

• Precision Agriculture

• Telematics

• Drone-based solutions

• Satellite imagery

• Technology as a Service (TaaS) with Pay-as-you-use models

4. Scaling Farm Machinery

Mahindra aims to rapidly grow its farm machinery business, already a ₹1,000 crore sector with strong potential. The company will use its vast network of 2,300+ tractor dealers to sell both traditional equipment and new-generation machinery under the Mahindra and Swaraj brands.

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CMV360 Says

Mahindra’s four-vector strategy—strengthening domestic tractors, expanding globally, advancing electrification and autonomy, and scaling farm machinery—positions the company for strong long-term growth. With solid financial performance and a powerful dealer network, Mahindra is preparing to lead not only India’s tractor market but also key global markets. The company’s push into technology, electric tractors, and precision agriculture shows that it is ready to shape the future of farming worldwide.