New Holland to set up 2nd tractor manufacturing facility in India

CNH Industrial, the $19.8 billion Italian-American giant in agricultural and construction equipment, has announced plans to establish its second New Holland tractor manufacturing facility in India. The new plant will be larger than the existing one and is aimed at helping the company double its market share in India within the next five years.

Bigger Plans for India

Mr. Gerrit Marx, Global CEO of CNH, confirmed the expansion, stating:

“It will be bigger than the plant that we already have here. Our aim is to double our market share in India over the next five years.”

Currently, CNH operates a 60-acre facility in Greater Noida (Uttar Pradesh), with an annual capacity of 60,000 tractors, scalable to 70,000. In 2024, the plant produced about 51,000 tractors, of which 37,000 were sold domestically and 14,000 were exported to regions such as the US and Europe. The new plant is expected to be set up on a larger site, though exact details are yet to be revealed.

New Holland Market Goals and Product Leadership

India’s domestic tractor market is estimated at nearly 900,000 units annually, but New Holland currently holds only a small share. CNH aims to reach double-digit market share by 2030.

The company is already a market leader in sugarcane harvesters and small square balers with a commanding 60% share in each category.

Launch of Compact Tractors

On 10 September 2025, CNH also unveiled its first “Made-in-India” compact 4WD tractors in the 35–55 HP range from its Greater Noida plant. These tractors are primarily targeted for exports to Europe and North America, strengthening India’s role as a global manufacturing hub.

India as a Manufacturing & Innovation Hub

Mr. Marx highlighted that India is no longer seen as just another Asia-Pacific market. Instead, CNH is positioning India as a key hub for manufacturing, innovation, and global supply, leveraging its strong supplier ecosystem, cost advantages, and skilled workforce.

Currently, CNH’s India business generates $1 billion in annual revenues:

• 65% from agriculture
• 32% from construction equipment
• 3% from financial services

Beyond its Greater Noida tractor plant, CNH also operates:

• A combine harvester unit in Pune
• A backhoe loader and construction equipment facility in Pithampur (Madhya Pradesh)
• A technology and product development centre in Gurugram

Conclusion

With its second tractor plant in the pipeline and a renewed focus on innovation and exports, CNH is set to strengthen its presence in India. By scaling up capacity and tapping into both domestic and global opportunities, the company is positioning itself as a major force in India’s agricultural and construction equipment sector.

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