M&M to rev up Aussie tractor mart

Mahindra & Mahindra, India's largest tractor manufacturer by market share, is looking at capturing 10 percent of the Australian tractor market by 2009. Australia with a population of 18 million, has a market volume of 10,000 tractors, growing at 10 per cent annually.

M&M has exported 200 tractors in the 28 horse power to 80 HP segment from its Chinese and Indian manufacturing facility during the last financial year.

While the company exports low-end tractors from its Chinese base, the high-end variants are from its Indian facilities located at Mumbai and Nagpur.

"M&M is expecting to increase its exports to Australia (in the 28-80 HP category) by manifold to cross 10 percent of the market share by 2009," said Anjani Kumar Chaudhari, president, farm equipment sector, M&M.

The company has also set up a unit in Australia to assemble completely knocked down kits, he said.

The Australian market is dominated by companies such as Kubota, Shibaura, Mitsubishi, New Holland and Daedong. Customers also prefer used tractors. Many of these companies have only assembly facilities as the market size is too small for manufacturing.

M&M is hoping to enrich the company's brand presence in the country with its range of tractors and sports utility vehicles.

Mahindra supplies CKD kits from its tractor plants in Kandivli near Mumbai and Nanchang (of Jiangling Motor Co) in China.

The company also exports tractors to countries like US, Europe, and Egypt. The company's tractor exports in financial year 2006 jumped 29.6 percent to 6,981 units, while domestic sales surged 30 percent to 85,029 units.

The operations of the company's subsidiary, Mahindra Australia, began in Brisbane in early 2005. The Australian strategy came on the heels of successful tractor exports to the US.

The company has started its Australian operations, beginning with Queensland and New South Wales. Three dealers have launched Mahindra brand in Brisbane, Lismore and Wauchope inland from Port Macquarie. It has introduced both 4WD and 2WD tractor models ranging from 28 to 80 HP in Australia.