M&M’s Rajesh Jejurikar sees huge opportunity in lightweight tractor market globally and in India

Farm equipment-to-financial services conglomerate Mahindra & Mahindra  Ltd's (M&M) farm and auto divisions have launched the Oja range of tractors and also unveiled some of its future automotive products, including an electric Thar, in Cape Town. Speaking to CNBC-TV18’s Parikshit Luthra, Rajesh Jejurikar, Executive Director and CEO - Auto & Farm Sectors at M&M, highlighted the immense potential within the realm of lightweight tractors. He emphasised that such tractors are uniquely suited for various applications across diverse regions globally, marking a promising avenue for growth.

A: Oja in a manner of speaking is a key element of our strategy to go global. The Indian market for tractors is intrinsically different from other parts of the world. The Indian market needs tractors which are heavy, very durable and robust, but the global markets are different. There is a huge opportunity for lightweight tractors, because that is the kind of application that is there in many parts of the world, especially in horticulture and segments of that kind.

A: So we have worked on this, as you said, from 2018, we have invested about Rs 1,200 crore across the four platforms. That's creating a very good portfolio for us, for India as well as global markets. And we believe the tech packs, as we call them, are very interestingly named as My Oja, Pro Oja and Robo Oja, and we have designed it in a way that it sounds global. But an Indian consumer can say it as well.

These are, as we have said earlier, technologies typically available in very large tractors which run on very large farms costing a lot of money. A key part of the philosophy is about how we democratise technology, how do we improve the standard of living of different people, get farmers to get more productivity, make offerings which are more accessible to them and that's really how this product is being launched in India to begin with. We are launching seven products in India, and they are being priced with all of these tech features that in a way, we are giving technology free for consumers to experience it.

A: So we already have good presence in North America. ASEAN is a market in which we have no presence, especially Thailand is a very big market and we will be looking at a market entry in Thailand in 2024. It is going to take us that much time to get ready and set up a network. So that's a new go-to-market for us. So these become three key parts of our global strategy and then, of course, in India, where we will have a full product offering.

A: Big one from new market entry will be Thailand. That is, as I said, key part of the ASEAN market, it's a very strong market, providing us a very good opportunity to build a new base.  So that is the one significant market.

Apart from that we would be of course, build on Turkey, Brazil, which is turning out to be a very strong market for us, and Mexico. All of these will really be part of how we are going to build a global business. We are looking at Europe as well. Europe is a country in which we have no direct presence for our tractor business at present. So Europe will be a very good opportunity for a product like this.

A: We are working on an electric tractor, and we will announce it at the appropriate time. But the market right now for that is not large, because, tractor typically, as you see here too, is actually a prime mover for an implement behind. You need a lot of torque. And unless you are able to generate that torque in electric, the implement that you are moving is not going to be productive and effective. So we are working to find the right solutions for that but, yes, we are definitely working on electric tractor too.