CNH Industrial is sharpening its India strategy for both domestic and global operations. Narinder Mittal, President and MD, CNH India, speaks to Akbar Merchant on market positioning, financial performance, margins, capacity expansion and the company’s growth roadmap.
Q: How significant is India financially within CNH’s global operations?
CNH’s global turnover is around $20 billion. Our India legal entity recorded turnover of approximately $1.1 billion, or about Rs 8,700 crore, depending on exchange rates. This includes agriculture equipment, construction equipment, captive financing and the India Technology Centre. India currently contributes around 5–6% of CNH’s global revenue, and we expect this share to rise steadily as both domestic demand and exports grow. Reflecting India’s strong performance and long-term potential, CNH reorganised its structure to carve India out as a standalone region, increasing the total number of global regions to five. India now has representation in the global leadership team, ensuring that investment, technology deployment and capacity decisions are aligned with local priorities.
Q: What are the key businesses CNH operates in India today?
We have four legal entities in India. Agriculture is the largest business, covering tractors, combine and sugarcane harvesters, balers and, engines, vibratory compactors, skid steer and backhoe loaders. We also have CNH Capital Financial Services and the India Technology Centre, a global capability centre supporting global product design, and IT services
Q: Can you outline your manufacturing footprint in India and export role?
We have three manufacturing plants. Greater Noida produces tractors and engines. Pune manufactures combine harvesters, sugarcane harvesters and balers. The Pitampur facility produces construction equipment. India serves both domestic and export markets. India is not just India-for-India, but India-for-global for CNH. About 20% of agriculture equipment and 25% of construction equipment is exported to the US, Europe and Latin America. For select models, India acts as a single global manufacturing source. CNH has launched a compact tractor for the US market, exclusively manufactured in India, with additional models planned. The India–US trade deal and the reduction of tariffs to 18% comes at a very opportune time for us at CNH. The US is already a key market for our Utility and compact tractor exports.
Q: How did CNH perform in tractors, and what are your volume and margin targets for India?
CNH sold around 47,000 tractors in India in 2025, rising to about 48,000 units including SAARC markets. We expect volumes to cross 50,000 units in India plus SAARC in 2026. Our tractor market share in India stands at 4.3%, while we hold over 60% market share in sugarcane harvesters and balers. Over the medium term, tractor volumes are targeted at an annual growth rate of around 10%. Our gross margins in the domestic tractor business are around 18–19%, while export margins are lower at about 15%. These margins relate to tractors and parts.
Q: What investments are planned to support future growth and market reach in India?
We have already increased capacity at our Noida plant by about 15% through debottlenecking. In addition, CNH plans to set up a fourth manufacturing plant for tractors in India. Locations under evaluation include Uttar Pradesh, Haryana and Rajasthan, with a final decision expected by Q2 2026. The new plant is likely to become operational in early 2028. Our dealer network has expanded from around 450 dealers two years ago to 580 today. We plan to cross 700 dealers, while ensuring sustainable throughput and profitability at each outlet. Alongside this, we are investing in brand-building and customer engagement.
Q: How did the Indian tractor industry perform in 2025, and what is your outlook for 2026?
CY25 was strong, with the Indian tractor industry growing by around 20%, aided by GST-led demand. Growth accelerated in the second half, and January 2026 alone recorded over 40% year-on-year growth. Momentum is expected to continue through Q1 and Q2, with 20–25% growth in the first half. However, volumes are likely to moderate in Q3 and Q4, and CY26 could be flat to marginally lower than 2025.