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India becomes cornerstone of CNH’s global strategy

CNH (India) Pvt Ltd, the local arm of global equipment and technology major CNH, is deepening its commitment to India with a planned fourth manufacturing facility, its second dedicated plant for tractors. The company is scouting for nearly 60 acres of land to house the new site, which will anchor an ambitious push to grow the New Holland brand from its current 4 per cent market share into double digits within the next five years.

The expansion signals CNH’s confidence in India’s accelerating demand for farm and construction equipment, even as growth in developed regions such as Europe and North America plateaus. India’s market has now been carved out as a standalone region within CNH’s global structure, underscoring its rising strategic weight. The company sees India not just as a fast-growing consumer base but also as a manufacturing, R&D, and export hub with the potential to power growth across continents.

At its Greater Noida plant, CNH recently previewed its first Made-in-India compact tractors, a new category expected to reach customers within 18 to 24 months of final project approvals. The company views compact tractors as a gateway to address India’s diverse farming needs, while also broadening export potential. Industry watchers note that India’s agricultural machinery market today resembles China’s passenger vehicle sector in its early boom phase—only with faster acceleration.

CNH’s strategy rests on four interlinked priorities. First, it is expanding local manufacturing to meet both Indian and global demand, with India already exporting tractors to nearly 80 countries. Second, it is positioning the country as a global R&D hub, anchored by the India Technology Centre in Gurugram, which has become the company’s largest engineering base worldwide. Third, it is developing products tailored to India’s specific agricultural requirements, such as smaller horsepower tractors, while scaling up innovation for international markets. Finally, it is leveraging India’s supplier ecosystem and cost advantages to deliver world-class solutions at globally competitive prices.

In 2024, CNH produced 51,000 tractors in India, selling 37,000 locally while exporting the balance primarily to the US and Europe, each accounting for around 30 per cent of overseas shipments. The shift into lower horsepower models, beginning at 35 hp compared to the earlier 50–120 hp range, has broadened its reach among India’s smallholder farmers while opening opportunities in other emerging markets with similar needs.

The company’s footprint already spans facilities in Greater Noida, Pune and Pithampur, producing tractors, harvesters, balers, rakes, engines, compactors, loader backhoes and excavators. The upcoming facility will extend this portfolio further and is expected to play a pivotal role in meeting India’s growing mechanisation needs while strengthening the country’s role in CNH’s global supply chain.

With over 700 engineers in Gurugram driving virtual simulations, advanced prototyping and next-generation product development, India is rapidly evolving from a market to a cornerstone of CNH’s worldwide strategy. By aligning local manufacturing, engineering and sourcing strengths with global demand cycles, the company is positioning the country as a decisive engine of growth in the decade ahead.

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