CNH, a global leader in agricultural and construction solutions, has set an ambitious goal to double its tractor market share in India within the next five years. This strategic move comes as the company seeks to capitalize on the growing demand for tractors in the country, which is expected to reach 10-11 lakh units in the coming years. Currently, CNH holds a market share of over 4% in the domestic tractor segment, with an annual production capacity of around 70,000 tractors.
To achieve its target of an 8% market share, CNH plans to invest heavily in expanding its sales infrastructure and enhancing brand awareness. Narinder Mittal, President and Managing Director of CNH India, highlighted the company’s commitment to bolstering its dealership network, which currently stands at 500 outlets. This expansion is expected to significantly improve CNH’s reach and accessibility to customers across India.
CNH’s strategy also includes leveraging technological advancements to drive growth. The company recently commenced production at its new engine plant in Greater Noida, marking a significant investment of USD 15 million. This plant, designed for scalable production, will initially focus on manufacturing a 2.8-litre TremV-compliant engine for construction equipment. The company plans to expand the production of this new engine to include agricultural tractors once the TREM V emission norms are introduced.
The new engine plant is part of CNH’s broader strategy to enhance its production capabilities. The company aims to increase its annual production capacity to 1 lakh units per year, supporting its growth ambitions. This expansion is crucial as the tractor industry in India continues to grow, driven by increasing demand from the agricultural sector.
In addition to domestic growth, CNH is also eyeing international markets. The company plans to export compact tractors to the US market, with the first shipment expected early next year. This move underscores CNH’s confidence in its product offerings and its ability to compete on a global scale.
By doubling its market share, CNH aims to solidify its position as a leading player in the Indian tractor market. The company’s focus on technological innovation, expanded sales infrastructure, and enhanced brand awareness are key pillars of this ambitious strategy. As the tractor industry in India continues to evolve, CNH’s proactive approach positions it well to capitalize on emerging opportunities and meet the growing needs of farmers and agricultural businesses.
