CNH India, a manufacturer of agricultural and construction equipment, is resuming its exports of tractors and components to the United States. The company plans to significantly increase its exports of components and aggregates from India, targeting $500 million over the next three years, up from approximately $80 million in 2025.
Tractor exports from India had been suspended for the past couple of months due to the U.S. government imposing a 50% duty, which led to a halt in production for two months. Narinder Mittal, president and managing director of CNH India, stated that production has now resumed.
Impact of India-US trade deal
With the recent India-U.S. Free Trade Agreement, it is advantageous to restart supplies from India, which has become a key source for small tractors for CNH—specifically tractors up to 75 HP and some in the 120 HP range. The entire small product platform has shifted to India, making for India and the globe, he said.
The company previously exported around 3,500 Utility Light and Medium tractors to the U.S. and will now also include the Compact tractor range in its portfolio, potentially doubling the export volume, according to Mittal.
CNH plans to import higher-end tractors
Additionally, CNH plans to import higher-end tractors, 200 HP and above, from the US to India. This move caters to increasing demand in the post-harvest segment of the Indian market, as noted by Mittal. These tractors will now become cheaper in India, Mittal said.
The European Union Free Trade Agreement (FTA) is expected to benefit both tractor and components exports, with similar volumes going to the EU region. The US and EU markets currently account for 60% of the company’s $200 million exports from India.
The FTA will also lead to the import of advanced technology from the US and EU to India and make it more affordable for Indian farmers, Mittal said. This will facilitate upgrades to products offered in the country, such as auto-guidance systems, telematics, and fleet management solutions.
On the components side, CNH India is expanding its portfolio, moving from casting and forgings to include rims, tyres, and sheet metal components. In the construction exports segment, the company is also adding excavators and skid steer loaders to its offerings. It is also exporting gearboxes and drives.