Homegrown auto major Mahindra & Mahindra is targetting to become the third largest tractor manufacturer in China and the US markets within the next three to five years.
“We had good growth last year, better than the overall market growth in China. Our objective is to become the third biggest tractor maker in China in the next three to five years,” Mahindra & Mahindra President( Automotive and Farm Equipment Sectors) Pawan Goenka told reporters here.
He said the company has made good progress in China and is presently ranked fifth in terms of volume in the country.
“Our current volume is around 35,000 units a year and it will have to be doubled, if not more, if we have to become number three in China,” he added.
The company has two joint ventures in China and one of them has become profitable last year, he said.
Similarly, he said, the company is also eyeing the third spot in the US market in the next three to five years.
“At present, we are a niche market player in the US as most of our tractors are of small horse power range,” Goenka said without sharing details.
On the domestic front, he said the overall tractors sales in India has slowed down and “is becoming a bit of a concern for the industry“.
“Apart from the high interest rates, the farm income has gone down while labour costs have gone up. These are affecting tractor sales,” he added.