M&M Focusing On Africa For Tractor Sales

India’s tractor and utility vehicle maker Mahindra & Mahindra (M&M) said it has intensified its focus on Africa to compensate the loss of sales from the U.S. market, The Economic Times reports. The company is setting up small assembly plants in
Africa and initially will focus the main markets such as Mali, Ghana, Nigeria and Zambia.

M&M has sold tractors in the 25-40 hp category in the U.S. for more than 12 years and has sold more than 60,000 units. The company has been expanding marketing efforts through new launches in the U.S. through its subsidiary Mahindra USA. But, the current economic conditions have slowed down sales, the company said, which has lead them to seek out other markets.

Mahindra, which has a large home base in India, is also increasing its presence in China as well. To expand into the growing tractor market in China, Mahindra acquired majority stake in Jiangling Tractors. It has a combined capacity of more than 50,000 tractors in China with its two ventures — Yancheng Tractors and Mahindra China Tractor.