CNH India expands operations with ₹1,800 crore investment

CNH India has announced a planned investment of ₹1,800 crore in the country over the next two to three years. The aim of this investment is to expand manufacturing capacity, increase localisation of components, and strengthen India’s position in the company’s global supply chain. This move highlights the growing importance of India in CNH’s long-term strategy for both domestic demand and exports.

Out of the total investment, around ₹1,500 crore will be used for the agriculture business, while ₹300 crore has been allocated to construction equipment. This shows that tractors and farm machinery remain the company’s primary focus in India, one of the world’s largest tractor markets with steady rural demand and expanding mechanisation.

New tractor plant to increase production capacity

A key part of CNH India’s expansion is the development of a new standalone tractor manufacturing plant. At present, the company produces nearly 60,000 tractors annually. After the new facility becomes operational, total production capacity is expected to reach around 1.2 lakh units per year.
This increase will help CNH India meet rising domestic demand while also supporting export markets. Higher production capacity can improve equipment availability, delivery timelines, and overall supply efficiency for dealers and farmers.

Strengthening India’s role in global manufacturing

India already serves as an important manufacturing and export base within CNH’s global network. By expanding local production and increasing localisation of components, the company aims to further strengthen the country’s role as a global supply hub.

Local sourcing helps reduce dependence on imports, improves cost efficiency, and supports a more stable supply chain. These factors are essential for maintaining competitiveness in the international agricultural machinery industry.

Part of a broader investment trend in India

CNH India’s ₹1,800 crore expansion comes at a time when several major manufacturers are increasing investments in India’s tractor and farm equipment sector. Escorts Kubota has committed about ₹4,500 crore for a new tractor manufacturing unit in Uttar Pradesh, while Kubota has announced an investment of nearly ₹2,000 crore in Haryana’s farm equipment industry.

In addition, Mahindra is developing one of its largest integrated manufacturing plants in Maharashtra. Together, these developments show strong industry confidence in India’s future as a global hub for tractor and agricultural equipment manufacturing.

What this investment means for the sector

CNH India’s expansion is expected to support:

• Higher tractor production capacity
• Stronger local manufacturing and sourcing
• Improved export capability
• Continued growth in agricultural mechanisation

These outcomes will benefit both farmers and the wider agricultural machinery ecosystem in the long term.

Conclusion

The ₹1,800 crore investment by CNH India marks an important step for the country’s tractor and farm equipment industry. With increased production capacity, deeper localisation, and stronger global integration, India continues to emerge as a key centre for agricultural manufacturing.

At the same time, similar large-scale investments by Escorts Kubota, Kubota, and Mahindra further confirm the sector’s strong growth potential. As mechanisation expands across Indian agriculture, such developments will play a meaningful role in shaping the future of the tractor industry.

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