How is Mahindra Doing?

[rback33]

So where do you see the consolidation coming in the tractor business with so many joint ventures with China, price point is sure to suffer---With FarmTrac-Mtron---Montana--McCormick--all sourcing their small tractors from the same source and TYM going it alone----Mahindra doing all kind of deals with Chinese company's---Kubota trying to buy the market with zero percent financing---CNH and John DEERE building Chinese plants---Kioti buying Bobcat---Deutz going it alone---and AGco doing what ever it is they are doing with all their labels and brands---surely some will go by the waste side because the numbers can not remain high with this credit crunch and housing slide!!!!! And I did not name all the players---plus all the importers of new and used tractors--- in the American market and I Failed to mention the low dollar---Is anyone looking at truly making a tractor in America again?? What is your out look Buck---I know you have alot of knowledge of the Asian markets--what gives???? Is the world use of tractors growing enough to absorb all this production along with the used tractor market---not many going to the scrap yards these days----or is there!!!

Wow. You asked a lot of question in there. I'll be short and sweet. I think you WILL see some companies disappear. I don't think the market can bear them all and I don't think the companies can wait out storm that is coming. The companies that build all or most of their own product should be better positioned to survive... Kioti, Mahindra, TYM... Deere, Kubota and CNH are not going anywhere.... It should be interesting over the next couple of years.

 

[boxygen]

From what little (admittingly) Ive read about the global tractor market, Mahindra is in it to win it. Meaning, they want to be the biggest tractor maker in the world. Mahindra tractors appears to be just a small chunk of Mahindra & Mahindra, who make a lot more than just tractors. They seem to have the diversity to "weather the storm." They wont stop making tractors if there is a slump in the market, the other components of the company will keep it from disolving. The market does seem to be flooded right now, everyone seems to be trying to sell compact tractors. A lot has yet to be seen with what will happen in the tractor industry locally and in the corporate world. Also, yes the United States is a big player in the world, but there are a lot of other countries that buy as much or more tractors than we do. I certainly hope that not too many dealerships close their doors here in the US but surely some will. My $02.

 

[bhostasa]

My local dealer also sells JD. He's sold the green machines for about 20 years and picked up the Mahindra line a couple of years ago. I've noticed that over the last 4-6 months he's got twice as many Mahindra's sitting outside as he does Deeres as well as much more parts, a large Mahindra sign, etc.

Not sure if that means much but it seems to me that he's doing pretty well with Mahindra so far.

 

[boxygen]

We dont have many Mahindra Dealers up here in Maine. In my area there is one corporation with 3-4 locations and they sell Mahindra, pretty much the only dealer that does. They boast they are the biggest dealer in New England or something like that. However, their Mahindra sign is small, selection is smaller. When I was searching for a CUT (20-30hp) they had maybe 5 onsite, and some larger small-ag tractors. They sold Kubota and Deere also and had a huge selection of those and more implements than you can imagine. In any of their Advertising, Mahindra is never mentioned, just mostly JD. The Mahindra pricing was horrible also. The whole situation made me question their commitment to the machine. It seems like they added the line just to be trendy or something like that. I ended up buying from a dealer who only sells Mahindra, and his first price was 10% better than the best price I got from the big dealer and he was enthusiastic about the machine!!

 

[MessickFarmEqu]

From what little (admittingly) Ive read about the global tractor market, Mahindra is in it to win it. Meaning, they want to be the biggest tractor maker in the world.

There is alot of hot air when they make those statements. If thats really their goal, they could start by building a larger percentage of their own tractors rather than getting them from Mitsubishi and TYM. As it stands Mahindra sells about 7000-8000 units a month globaly... thats available in their financial reports. For comparison Kubota does about double that in just the USA and we're only 30% of their global sales. There is not a prayer that even Kubota will ever challange companes like CNH, Deere and AGCO for being 'The largest tractor manufacturer in the world' in our lifetimes.

 

[redneckford]

There is alot of hot air when they make those statements. they could start by building a larger percentage of their own tractors rather than getting them ----- will ever challenge companies like CNH, Deere and AGCO for being 'The largest tractor manufacturer in the world' in our lifetimes.

THE LARGEST TRACTOR MANUFACTURER IN THE WORLD????----Just how many tractors do CNH,DEERE and AGCO build in their own plants,with their own employees and their own capital---I dare say that Kubota and Mahindra and a couple others probably build as many tractors as the ones mentioned above----Does the word Licensee mean anything other than rebadged!!! Those marketing departments have a way of making untrue things seem true!!! Bet I can build a paint booth and decal stamps cheaper than I can hire a manufacturing crew,pay them a livable wage, retirement,health benefits etc---oh yea i will need a large boat!!!! Made in America---from start to finish---heck the gas you are burning is made in -----not in America!!!

 

[MessickFarmEqu]

Just how many tractors do CNH,DEERE and AGCO build in their own plants,with their own employees and their own capital

in their defense, a vast majority. There certianly are some exceptions, but you largly don't see what CNH and Deere selling available from other companies with different paint on the hood. I can speak for CNH that they own over 50 manufacturing facilities around the world.

 

[redneckford]

Just how many tractors do CNH,DEERE and AGCO build in their own plants,with their own employees and their own capital

in their defense, a vast majority. There certainly are some exceptions, but you largely don't see what CNH and Deere selling available from other companies with different paint on the hood. I can speak for CNH that they own over 50 manufacturing facilities around the world.

50 manufacturing facilities---in Japan,Turkey, Pakistan, Egypt, Indian, China and South America---Do you really think they own a dang thing in each of these locations???? The Marketing Department is working overtime on you!!!----How many plant tours have you been on outside the US--- a few I know but the rest you have only been told about by the Marketing "Department"---I think if you take a world tour you will be surprised!!!

 

[MessickFarmEqu]

Do you really think they own a dang thing in each of these locations????

Yes I do.

Thats pretty freely available infomation if you take a look at the companies SEC filings. Only 12% of their product comes from other suppliers.

 

[jwcinpk]

There is alot of hot air when they make those statements. If thats really their goal, they could start by building a larger percentage of their own tractors rather than getting them from Mitsubishi and TYM. As it stands Mahindra sells about 7000-8000 units a month globaly... thats available in their financial reports. For comparison Kubota does about double that in just the USA and we're only 30% of their global sales. There is not a prayer that even Kubota will ever challange companes like CNH, Deere and AGCO for being 'The largest tractor manufacturer in the world' in our lifetimes.

Could you post that information or a link to it here?