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M&M to focus on African market to make up for US sluggish sales

24 Jun 2009 Evaluate

Utility vehicles major, Mahindra & Mahindra has intensified focus on Africa to compensate the loss of volumes from the US market, which is facing recessionary trends. The company is setting up small assembly plants in Africa. Initially, the tractor and utility vehicle major will focus on some of the main African markets like Mali, Ghana, Nigeria and Zambia.

With more than one-third of tractors sold in Africa being imported, M&M sees a huge opportunity here. M&M’s tractors are marketed as fuel-efficient and technologically-superior vehicles. While the volumes are still low, it has sold around 1,600 tractors till date in this market.

M&M marketed tractors in the 25-40 hp category for the US markets. With the US housing sector taking a dip in the recent past, ‘hobby’ farmers have been going slow on new purchases of tractors. M&M has been present in the US market for more than 12 years and has sold more than 60,000 units.

Mahindra, which has a large base in India, is also increasing its presence in China, America and Australia. To expand into the growing tractor market in China, Mahindra acquired majority stake in Jiangling Tractors. It has a combined capacity of more than 50,000 tractors in China with its two ventures — Yancheng Tractors and Mahindra China Tractor.crackcrack

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