Revving Up Exports: CNH India Gears Up for US Tractor Market Surge

CNH India plans to resume full-scale tractor exports to the US and invest Rs 1,800 crore over the next few years, following a trade agreement that slashes tariffs. The company aims to double production capacity and expand the US market despite current downturns.

CNH India's subsidiary plans to reignite its US tractor exports, leveraging a newly inked trade deal that has significantly lowered tariffs from up to 50% to just 18%. With a renewed strategy, the company seeks to inject approximately Rs 1,800 crore into expanding its operations over the next two to three years.

The New Delhi-based unit, responsible for brands like New Holland and Case IH, had previously halted many of its US-bound shipments due to prohibitive duties. The resumed exports, buoyed by the introduction of new compact tractor models, are expected to maintain the US's pivotal role in CNH's export volume.

Aligning with its 'India for Global' initiative, the company plans to set up a new standalone tractor manufacturing plant in Uttar Pradesh, aiming to double production capacity. With an eye on growing the Indian market share, CNH forecasts substantial growth backed by favorable government policies and increasing demand for agricultural mechanisation.

(With inputs from agencies.)