By the end of the decade, the leading ones in construction and farm equipment plan to quadruple the market share of New Holland tractors in India.
Based on demand conditions, CHN Industrial intends to increase its tractor manufacturing capacity in India over 40% in two years to 100,000 units. This would help the worldwide agriculture and construction equipment company to become more visible in the home market and increase exports.
“Our capacity right now is seventy thousand tractors. Our growth scheme calls for 100,000 tractors. The way the market develops helps us to expand our company. Manufacturing 100,000 units in India is clearly visible to us, said CNH India President and MD Narinder Mittal. Subject to industry demand, he stated on the chronology that it will be done in two years.
Under the New Holland brand, CNH India builds and markets tractors. Under the CASE name, it also produces building and agricultural tools. Along with harvesting solutions, including combine and sugarcane harvesters, crop residue management and farm mechanization systems, New Holland provides tractors ranging from 20 to 110 horsepower.
The company runs three production plants in India: Pitampura, Noida, and Pune. While the Pitampura facility produces construction equipment including loaders, compactors and excavators, the Noida and Pune plants build tractors. While the Pune plant can generate 10,000 units annually, its yearly capacity is 60,000 tractors.
“We now have capacity remaining as we are running close to 50,000 tractors. We now know the places where we must concentrate to increase capacity. It is more of a debottlenecking needed in the first step; the second step would be the whole expansion of the plant, he remarked.
Citing accessible space for use, Mittal indicated the business is probably going to undertake a brownfield expansion at its Pune factory. The company might investigate debottlenecking in Noida to increase the scale somewhat.
From the present 4.1% the end of the decade, CNH intends to double the market share of New Holland tractors in India to 8%. To increase New Holland’s market share, Mittal pointed out CNH would concentrate on raising brand recognition, growing the network, and assembling a strong product lineup.
Starting operations of its new engine plant at the Greater Noida location, CNH will produce TREM V-compliant 2.8L engines to tractors and construction equipment with a capacity of 20,000 engines annually on Thursday. With a $15 million investment, localized manufacture of the 2.8L F28 engine was undertaken.
As it plans to manufacture for exports, the company has focused its global operations in India, using scale in the Indian market. The corporation exports about twenty percent of its Indian tractors to other countries.
Although CNH now exports to the US market, it intends to start doing so next year with small tractors. The company envisions an annual volume of 8,000–10,000 units of exports to the US and is in a joint venture with LS of South Korea to build small tractors.