Mahindra Now 4th Largest Tractor Seller in USA

[SkyPup]

Indian brands finally seem to be making it to the top league in the United States. Mahindra & Mahindra tractors’ top dealer in the US has become the largest tractor dealer in the US, muscling past dealers of John Deer, New Holland and Kubota.

Last year, Bill’s Tractor, a Texas-based dealer of Mahindra, sold over 900 units of tractors compared to 400-500 typically sold by competitors.

Mahindra has emerged as the fourth-largest tractor brand in the US, with a 5% share of the 15-90 horse power (HP) segment, that is also known as the hobby or consumer segment.

The company plans to double its market share by the end of ’08. In ’04, it sold close to 8,500 units of tractors in the US market.

“Mahindra tractors have received a very positive response from customers. They offer superior performance at a lower price,” says Bill Bailes, proprietor of Bill’s Tractor.

The US market now accounts for 12-13% of Mahindra’s tractor production and one-fourth of its farm-equipment division revenue. During ’04, Mahindra US clocked sales of $128m. Sales are expected to cross $250m by December ’08.

“US is the world’s second-largest tractor market and our growth there is crucial to our plan of emerging as the largest manufacturer of tractors in the next three years,” says Derek Johannes, president, Mahindra USA

The US tractor market is evenly divided between the higher horsepower (90 HP plus) farmer segment and the hobby segment (15-90 HP).

Mahindra is only present in the latter and has no immediate plans to enter the high-value farmer segment. John Deer dominates both the farmer and the hobby segment with a 35% market share, followed by New Holland and Kubota.

Feeling threatened, John Deer, New Holland and Kubota are learnt to have placed Mahindra tractors in their respective canteens to motivate their employees.

Mahindra is now present in 37 of the 52 states and plans to go national in a phased manner.

These states account for 90% of all tractors sold in the country. Simultaneously, the company is planning to enter the Canadian market.

“We have 270 dealers in the US now and would be adding 70 new dealers every year for the next 3-4 years,” claims Mr Johannes. The company now has two assembly units — one each in Atlanta and Houston.

It is contemplating opening a third assembly unit in the southern part of the country to increase its market coverage.

Source: Indian Times News Network, New Delhi, India

 

[KENB]

Seems like the "Mahindra" forum on this website would be listed under "Major Manufacturers" and not under "Other Brands" given that it is 4th largest and all.
I snicker when I see brands like Cub Cadet in the "Major Manufacturer" section, and Mahindra in the "Other Brands" section. Nothing against the Cub, MF, Case, or Kioti, but to stick the 4th largest brand in the USA in the 11th Section down on this site is just plain wrong to me. Anybody else think so??

 

[SkyPup]

Sure does seem like it's being discriminated against in light of your comments.... /forums/images/graemlins/confused.gif

 

[Bob_Skurka]

A while back I posed a question about real rankings in sales. Here on TBN it is obvious that Kubota is #1 with a strong lead, JD is #2, NH #3, Kioti is fairly popular but still a distant #4 . . . and then everything else sort of falls by the wayside.

I tried asking various people in the industry and kept getting different answers. I'd still like to see some proof on all the brands, but that is likely to never happen. Especially for all the various Chinese brands because they are imported under so many brand names that getting a real handle on Jinma sales would be difficult.

One thing that really impresses me with Mahindra is their product selection and the depth of their product line. They offer a wide range of machines in both HST and GEAR, in a wide range of sizes. No other "minor" brand has the product range and #3 New Holland also lags behind Mahindra in small tractor depth & range, but obviously NH is focused more on the larger AG tractors.

Original link for those curious about ranking the manufacturers: Manufacturers ranking . . . who really knows?

 

[Varmintmist]

Shhhhhhhhhhhhh..... we're sneaking up on them.

Its going to be funny when red goes in front of orange. The color war's will be even funner /forums/images/graemlins/grin.gif

 

[SkyPup]

As messed up as India's infastructure is, it is amazing that they export anything over here or are able to provide any service for what they do export.... /forums/images/graemlins/confused.gif


BOMBAY, India -- The traffic is so bad on the road to India's busiest port here that local truckers measure speed in hours per mile instead of miles per hour.

With container traffic surging as India's economy booms, hundreds of trucks -- 10 abreast in places -- are sometimes stuck in five-mile lines for as many as 30 hours before they can unload their cargoes of towels, tea and tractors to be shipped around the globe.

"If you can get in after waiting only 15 hours, consider yourself lucky," grouses V. Padmanabhan, general manager of Seabird Marine Services Pvt. Ltd., a container freight station packed with acres of containers piled four high. "Traffic volume has been growing 20%, 25% a year but they have had the same four-lane road to the port since 1989."

India's annual economic growth has been racing along at an average 6% for the past five years, but investment in key infrastructure projects -- roads and ports, power and water -- to support the expansion hasn't kept pace. It can take six to 12 weeks, for example, to deliver products to the U.S. from India, while Chinese exports can move from the factory floor to U.S. stores in as little as three weeks.

Electrical blackouts and lack of water pressure occur numerous times per day throughout the city, including the industrial areas.

Also, one of India's biggest barriers to foreign investment is its stringent labor laws, which make it difficult for large companies to fire employees or to use contract laborers. In addition, regular strikes by factory workers, dockworkers and truckers frequently slow shipments.

Harshad Daswani, business-development manager at Fountainhead Exports in Bombay, knows that only too well. He has truckloads of towels stuck at Bombay's port. He says he can get thread from Japan delivered to his company's factory in China in three days, while it takes his drivers eight days to move linen from his factory in the northwestern state of Gujarat to a ship in Bombay. Mr. Daswani says he doesn't know what to tell his customers, which include U.S. retail giant Wal-Mart Stores Inc. "Bombay docks are a nightmare," he says. "But if you try to give your customers these excuses they just don't buy from you -- they go to China.

Mr. Daswani figures Fountainhead and other exporters in India could cut costs by 20% and boost sales by 30% a year if India had better roads, ports and airports.

Source: Wall Street Journal

 

[Muhammad]

So, do you guys think we should open separate Mahindra Buying/Pricing and Owning/Operating forums? /forums/images/graemlins/smirk.gif

 

[SkyPup]

In lieu of their sales figures, I would say they have earned it for sure! /forums/images/graemlins/wink.gif

 

[Poboy]

I think its time for Mahindra to make the move . I work at a dealership in GA and we move more units than the local orange dealer so why not give Mahindra it on spot here on this forum. Just my opinion.

 

[JimR]

Sure looks that way to me.