Mahindra & Mahindra will set up its second assembly plant for tractors in the United States. Its subsidiary, Mahindra USA, which currently operates an assembly unit at Houston, Texas, is looking to set up the new plant near Atlanta, Georgia.
M&M executives confirmed the development, but did not divulge the investment and expansion details.
Mahindra USA sells utility and compact tractors in the 20-60 hp range across 27 US states.
The company has positioned itself as a niche player, targeting non-farming segments such as hobby farmers, nursery operators and small-to-medium-sized contractors.
The subsidiary imports tractors from M&M and its South Korean collaborator Tong Yang Moolsan, and sells them in the US under the Mahindra brand name.
Mahindra USA has, of late, adopted aggressive marketing in the US, offering zero per cent finance for loans up to two years.
The company sold 4,113 tractors in the US in 2001-02. Company executives said both volume and value of sales during the previous fiscal grew by over 50 per cent. The company's results for 2002-03 are yet to be announced.
Mahindra USA, according to the executives, is now an integral part of M&M's export strategy as it prepares to unveil new generation high-end tractors based on Horizon III and Horizon IV platforms.
While Horizon III tractors are being indigenously developed by the company's 500-member research and development division, it is working on Horizon IV, jointly with the Korean partner.
M&M is also looking to foray into Europe through local collaborations.