Mahindra and Mahindra, the largest tractor maker globally in terms of volumes, is targeting a bigger push in key global markets with a new lightweight tractor platform called Oja.
The homegrown company already has a wide global presence. It has product development facilities in India, Japan, Turkey and Finland. It also has plants in these markets, as well as USA, Algeria and Australia.
The new Oja tractor platform has been built in collaboration with the engineering teams of Mahindra and Mitsubishi Mahindra Agriculture Machinery, Japan, at an investment of Rs 1,200 crore.
Oja will encompass four platforms, three of which were unveiled on Thursday, August 15 at an event in Cape Town, South Africa. The tractors based on these platforms will range from 20 horsepower (HP) to 70 HP.
The Oja platform gives Mahindra the products to grow in the lightweight tractor market and deepen its penetration in areas like horticulture.
For a start, Mahindra will launch 7 tractor models (21-40 HP) under the Oja brand in India this year. While production began in June, sales will start beginning October.
After India, the Oja range will subsequently be launched in North America, ASEAN, Brazil, Australia, South Africa, Europe and the SAARC region.
Mahindra will also mark its debut in the ASEAN region starting with Thailand in 2024 with Oja.
"Our export volumes in the 2022-23 financial year were 18,000 units. We plan to double exports in three years," said Hemant Sikka, president - farm equipment sector, Mahindra and Mahindra.
The tractors will be made at Mahindra's manufacturing plant in Zaheerabad, Telangana.
Mahindra's farm equipment business clocked revenue of Rs 32,000 crore in the last financial year.
The overall tractor industry in India clocked sales of around 9.45 lakh units last year. Mahindra, TAFE, Sonalika, Escorts and John Deere are among the top players in the tractor market.
Mahindra (including the Swaraj brand) had a market share of over 41 per cent in the domestic market in 2022-23. However, in the lightweight space, its market share is lower at 30 per cent, which it aims to grow to the national scale with this Oja range of tractors.
"Oja tractors empower Mahindra to address 25 per cent of the global tractor industry while opening new markets like Europe and ASEAN," said Sikka.
In India, the company has around 1,100 dealers and it plans to add another 200 in the next couple of years.
The Oja tractor range will introduce new technology and capabilities like 4-wheel drive, connected tech features and automation in the Indian market.
The Oja compact 27 HP tractor has been priced at Rs 5.64 lakh, and the small utility 40 HP variant will cost Rs 7.35 lakh.
