Mahindra & Mahindra, the country's largest tractor maker is planning to double its export volumes to 36,000 units in the next three years, with the launch of new global lightweight tractors under the brand Oja.
The company, which is already the world's largest tractor maker with manufacturing bases in Japan, US, Australia, Turkey and India, will see a significant spike in overseas volumes with the opening up of 12 new markets with the launch of the Oja range of tractors.
The company is entering the 80,000 units Asean market with Oja and it plans to enter countries like Thailand, Indonesia, Philippines amongst others.
Alternatively, for the 1.75 lakh units North American market, the company will be moving the sourcing of lightweight tractors from South Korean partner TYM to its own Oja range of products, which will increase its export volumes further.
Hemant Sikka, President of Farm Equipment Business at Mahindra & Mahindra, said that the company's aspiration is to double the exports volumes in the coming years and the Oja range will bring in incremental sales for the company not only in India but other critical global markets like Asean region, wherein it so far has no presence.
Mahindra & Mahindra exported about 16,000 units in FY23, with the addition of a new range of tractors the export market is set to accelerate.
Annually, about 3 million tractors are sold the world over, and India is the largest market in the world with close to 1 million tractor sales.
Mahindra & Mahindra is the world's largest tractor maker with a global market share of about 13-15%. The new range of Oja platform, which has been developed with an investment of Rs 1200 crore, will help the group cater to over 7.5 lakh units per annum light tractor market.
The new platform will help Mahindra expand into markets like ASEAN and Europe and help the company build its presence in North America.
Aimed at the growing horticulture segment in India, wet paddy fields in South East Asia and personal buyers in the evolved markets of US and Europe, Mahindra seeks to expand its addressable customer base globally.
As per Precedence Research, 67% of the global tractor revenue share comes from the Asia Pacific region, with engines less than 40 horsepower generating close to 63% of revenues in 2022. The global tractor market is set to grow at a compounded annual growth rate of 6.05%.