M&M bets Oja will help double tractor exports

livemint.com:

global market for light-weight, four-wheel drive tractors with its new platform, Oja, unveiled on Tuesday. According to a top company executive, Oja, built at an investment of ₹1,200 crore, is an entirely novel venture for the company, whose expertise has been rooted in “heavy, rugged" tractors. Mahindra will build multiple models on the platform across four categories—sub-compact, compact, small utility and large utility segments—with seven products set to hit the Indian and foreign markets later this year.

The company expects the platform to help double export volumes from FY23’s 18,000 units to around 36,000 by FY27, said Hemant Sikka, president, farm equipment sector, Mahindra & Mahindra in an interview with Mint on the sidelines of an event in Cape Town to showcase the new platform. The family of light-weight tractors is designed for key existing global markets such as North America, Association of Southeast Asian Nations (ASEAN), South Africa and Australia, as well as new markets in Europe and Africa where the demand for tractors emerge from the vineyards segment. The company said the new platform opens up the light-weight small tractor market for Mahindra & Mahindra, broadly in the 20-60 hp category, with incremental potential of nearly 3,75,000 units, globally.

Mahindra’s Zaheerabad factory in Telangana will build the new tractors. The facility has a 30,000 unit initial capacity marked out for the Oja range. While M&M will manufacture its own engines for the larger tractors, its small tractor (20hp) will sport engines from Japanese partner Mitsubishi.