India is dedicated to agricultural machines today what China was for cars 20 years ago: CNH CEO

CNH doubles the manufacturer of agriculture and construction in India as part of the next stage of expansion. In a selected media briefing on Tuesday, Geerit Marx, CNH CEO, told reporters that the company was planning to double its share in the tractor market in India during the next five years. The company of the new Netherlands is aimed at 10 % of the Indian market by 2030.

“India is intended for agricultural machines today what China had passengers 15 to 20 years ago. When I took over my position, the first organizational change was the separation of India from the Asia Pacific region. I always thought India is a region alone,” CNH CEO said.

He added: “With the presence of the largest population in the world and the equivalent power of the United States, Europe, Africa and Indonesia combined, India cannot be treated as another market.”

In India, CNH operates with four legal entities: CNH Industral India, Cases Building Equipment, CNH Capital, and CNH India Technology. It is worth noting that agriculture represents 65 % of the company’s revenues, followed by construction equipment (32 %) and financial services (3 %). Nowadays, CNH has three manufacturing facilities in the Greater Noida, Bonnie, and Pithampur. The Greater Nuwaida Factory has a production capacity of 60,000 rituals, expandable to 70,000. There are already ongoing plans to create a fourth factory in India, where the Earth is detected for a larger attachment than the current Nuwaida unit.

Despite his 26 -year work in India, CNH has only a market share of only 4.1 % in the tractor sector. According to Marx, India has not given sufficient strategy in the past. He said: “We have not seen India in the overall capabilities that it can offer to a company like us.

As part of her growth strategy, Marx has identified a four -point plan to expand her market share, and India’s offer through four lenses: local market, exports, sources, and innovation. “India is a very close market for us to produce and selling machines locally. We are on the right path to reach the market share by 5 % soon, and we see a lot of growth. We are making machines in India, not only for local farmers but also for Europe, Africa, Africa and Southeast Asia,” Marx pointed out.

According to him, CNH also benefits from a strong resource base in India, which provides competitive sources. Moreover, the company’s India Technology Center (ITC) in Gurgown plays a decisive role in developing cost -available digital technologies such as fleet management and auto guidance systems designed for Indian farmers.

Watering a storm of the US tariff

In the 2024 calendar year, CNH manufactured 51,000 grams in India. Among them, 37,000 locals were sold, while 14,000 were exported to the United States, Europe and the Middle East. Currently, the United States represents 30 % of the company’s exports, while Europe represents 70 %.

In light of Washington’s decision to impose a 50 % tariff, Marx described the move as “a continuous conversation.” He said that the company is ready to absorb the pain in the short term while taking advantage of India’s capabilities in the long term as a local center and export. The shipments were temporarily suspended to the United States.

Marx said: “We have enough shares of locally made Indian machines in the United States. The North American market slows down anyway, so we have stopped shipping at the present time and we are waiting for a real deal. Fifty percent is not a deal – it is a temporary stop.”

Although customs tariffs make exports to the United States less competing, CNH insists that it will not offer customer obligations. “The definitions will not distract our attention from doing the right thing in India, which is a major area for us,” he stressed.

“We have enough shares for half a year. But before our stock levels drop, we will resume charging – even if it means selling products at a confusion. If we need to absorb a loss on a small number of machines due to the tariffs, let it be.

When asked if CNH could avoid customs tariffs by manufacturing integrated tractors in the United States, Marx rejected the idea. “The production of compact benefit and tractors in the United States is unrealistic. The driving supply and engines chain is here in India, not in the United States. Adding US employment costs as well as a 50 % tariff makes machines expensive expensive,” he explained.

Marx also made it clear that CNH is the bets of definitions will not last. He said: “It is difficult to imagine that the definitions are identified by 50 %. If necessary, India can provide other sites, and we will set our silence accordingly. But in this sector, there is no way about India.”