Leading tractor manufacturer to establish presence in Thailand
Mahindra & Mahindra, the world's largest tractor manufacturer by volume, has officially announced its commitment to establishing a presence in ASEAN, with Thailand serving as the first country to launch its products and services, according to Kedar Apte, the company's chief of international operations for the Farm Equipment Sector (FES).
Speaking in an exclusive interview with The Nation prior to the launch of its lightweight tractor at AGRITECHNICA ASIA 2024 + Horti Asia in Bangkok, he said that the time had come for Mahindra & Mahindra to enter the ASEAN market, with Thailand selected as the ideal nation on which to build its business.
"ASEAN is one of the world's largest agricultural clusters, with approximately 80,000 tractors sold annually in the region. As a result, it is one of the top six potential markets in the world. That is how important it is. As the global market leaders in terms of tractor sales, we felt it was critical for us to establish a presence in Thailand as well," he explained, adding that Thailand was considered a key market in ASEAN.
According to Mahindra & Mahindra, Thailand sells approximately 50,000 tractors each year, accounting for more than half of all tractors sold in the region.
Aside from market size, he pointed out that Thailand is a highly mechanised country, which means that tractors, among other farm machinery, are used at various stages of agriculture, from land preparation to sowing or planting, crop care, harvesting, and so on.
With over five decades of experience in the tech agriculture industry, he understands that the context of ASEAN agriculture differs from Europe and America in terms of area and method. As a result, Mahindra & Mahindra has spent the past few years developing tractors suitable for the ASEAN market.
Furthermore, with similar experiences from operating in India for many years and being the market leader with more than 42% market share, the company understands farming of small plots very well.
The idea led to a collaboration between Mitsubishi Mahindra Agriculture Machinery's engineering teams in Japan and Mahindra Research Valley, India, Mahindra FES's research and development centre, to develop the OJA tractor model.
The Mahindra OJA, Mahindra's most ambitious global tractor programme, is based on all-new lightweight 4 wheel-drive Compact Utility tractor platforms, with over 40 models covering a wide range of horsepower points, from 20hp to 70hp, and built on four distinct sub-platforms weighing 700 kilogrammes to 2,050 kg.
To begin, Mahindra will introduce the OJA range in ASEAN on the Compact (21-30 hp) and Small Utility (32-40 hp) platforms, with a variety of engine and gearbox options to ensure suitability for a wide range of applications.
"The lightweight tractor industry is primarily due to Thailand's soil conditions. Tractors must be lightweight so that they do not sink. Mahindra OJA is suitable for both wetland and dry land applications in Thailand and other ASEAN countries as we expand," he noted.
Sanjeesh Bera, Mahindra's head of ASEAN operations, Farm Equipment Sector, said at the unveiling of the Mahindra OJA that the OJA will provide three technology packs: MYOJA (Intelligence Pack), PROJA (Productivity Pack), and ROBOJA.
He pointed out that these packs improve overall productivity by reducing manual interventions and operator fatigue in crops such as paddy, sugarcane, vineyard, horticulture, and orchards.
"We are excited to introduce this transformative technology to farmers in Thailand and other ASEAN markets, advancing Mahindra Farm Equipment's vision of globalisation," he noted.
Meanwhile, with advanced, highly differentiating technologies, Apte was confident that its entry into ASEAN, beginning with Thailand, would follow in the footsteps of its success in India and the United States.
The company will also launch products from the OJA range in Brazil, Australia, and the SAARC region, while entering Western Europe for the first time, he said.
Furthermore, he expected to be a part of Thailand's ambitions to transform to smart agriculture using Mahindra AI technology to make farming more simple and convenient, as well as its long-lasting machine with low maintenance costs and high fuel efficiency.
With its first foray into the region, he said that the first few years will be spent establishing the brand and finding local dealers to assist with after-sales service.
“At Mahindra, we believe that our journey with the customer does not end when a tractor is sold, but it only begins when a tractor is sold, because after sales, service is a very, very important element of customer experience," he said, adding that the company will double its Thai workforce.
"We will expand gradually as we continue to learn and improve. And I am confident that within the next five years, we will have a high single-digit market share," Apte said.
Founded in 1945, the Mahindra Group is one of the world's largest multinational conglomerates, employing 260,000 people across 100 countries. It is India's market leader in farm equipment, utility vehicles, information technology, and financial services, as well as the world's largest tractor company by volume.
