With tractor sales on the rise, John Deere plans to expand engine capacity in India to meet the growth in demand. John Deere has capacity to make 1.32 lakh tractors while engine capacity is at one lakh so we need to balance this, said Satish Nadiger, MD, John Deere India.
Tractor sales in 2018 for the company was at one lakh units with 70% of volumes coming from the domestic market and 30% from exports, Nadiger said.
The company is also expanding tractor manufacturing capacity in the 40-50 HP range, which is seeing growth and is the largest segment in country, Nadiger said.
Nadiger said they were positively surprised with the growth in the last two years in the tractor segment in the country. The last four years has seen the company grow at around 35% with market share growing by 3.5 %, he said.
Apart from growing domestic sales, John Deere’s India operations is also exporting to 110 countries including North America and Europe apart from South America, South East Asia and Africa. The 55-75 HP range is exported from India to the US.
John Deere stared operations in India with tractors in the 50-55 HP range. As it completes 20th year in India, John Deere now has in its portfolio the 75 HP, 110 HP on the higher side and 39 HP, 40 HP and 39 HP on the lower side.
John Deere is celebrating its 20th year in business with the four-wheel-drive 3028EN tractor for orchard and paddy farming.
John Deere has tractor manufacturing locations in Pune and Dewas, MP, harvester manufacturing in Sirhind, Punjab, electronics system manufacturing in Pune, Engineering Centre and Technology Centre in Pune and a Parts Distribution Centre in Nagpur.
It also has a captive finance company to provide financing to John Deere customers and now accounts for 30% of their financed tractor sales.
Nadiger said John Deere is also working on implement to work with its tractors.