America is our emerging market: Anand Mahindra

Written by Press Trust of India | Updated: Sep 1 2014, 05:33am hrs
With an aim to be one of the most admired corporations by 2020-21, the Mahindra Group is looking at its successful tractors business, where it is synergising automotive technology with farm equipment, to take the lead. The $16.5-billion home-grown multinational is seeking to enhance its presence in the West like the US.

The glamourous side is SUVs but frankly the tractor side is where we are number one in the world. Our brand is making global headway faster on tractors than auto, Mahindra Group chairman and MD Anand Mahindra said.

Highlighting the progress that the group has made in the farm equipment sector, he said the latest tractor Arjun Novo was an example of it.

Our goal was to say we are second to none in technology. We dont want to be value for money tractor that is beating out John Dere and all... This product has incorporated auto technology in the tractor. If you look at electronics, suspension, ergonomics... The state-of-the-art knowledge of R&D we had in auto has come in to (it), Mahindra said.

Commenting on the expansion of the tractor business in developed markets, Mahindra said: I call America our emerging market, they find it very amusing when I said that. The fastest growth we have got in the last year and a half is in America. We have grown 35-40%.

The main competitors there are John Dere and New Holland and in the segment Mahindra operates, its market share has now reached 10%, he added.

In the last fiscal the group had sold a total of 2,67,635 tractors, up 20% from the previous year. In the April-July period this fiscal, the companys total tractor sales were down by 1% to 91,962 units from 93,046 in the year-ago period. PTI