Wednesday, 27 July 2011

Luxury tractors to be sold on invitations in Indian market by M&M

While there are several super luxury cars being sold by invitation, this should be the one that is real exclusive. According to a report in Business Standard, the utility major Mahindra & Mahindra (M&M) is gearing up for the launch of the super luxury farm tiller which is an exclusively-crafted, premium category tractor by invitation only.
According to the report, M&M, the largest tractor manufacturer in India is all set to hit the road with its premium product, Arjun International, by the year-end. The tractor will come with a high-powered engine and have an air-conditioned cabin to keep the driver cool even during a hot summer spell. It was mentioned that it is priced at Rs 14,00,000 to Rs 16,00,000 and is almost double the cost of the most expensive tractors available in the market and is on a par with Honda Civic, Volkswagen Jetta and Toyota Corolla, among others.
It was mentioned in the reports that with the launch of Arjun International, Mahindra is targetting the wealthy farmers who hold large tracts of land and serve customers at both ends of the spectrum. The company has been making tractors for more than four decades. The report quoted Sanjeev Goyle, senior vice-president, marketing, and AppliTrac, Mahindra & Mahindra, as saying “In Punjab, Uttar Pradesh and Andhra Pradesh there are quite a few rich farmers with large land holding. They require a tractor which will aptly suit their status. Our new product Arjun will address this demand.”

It was reported that the premium product is developed by M&M on an existing tractor Arjun International 75757. This tractor will provide peak power of 80 bhp, which is substantially powerful than the regular high-selling tractors that produce around 35-50 bhp. Goyle refused to divulge price positioning and expected volumes of the vehicle. The target audience for this product was not the buyer who was shopping for his first tractor in the market. “In fact, the buyer is one who already owns other several tractors but is looking for a more suitable product, especially one which will set the status benchmark in his locality,” said Goyle, according to reports.
The report also stated that the company is not targeting huge volumes with the premium tractor that will be sold in limited numbers to select buyers. The idea, according to the company, was to showcase the technology in international markets such as the US and Australia. “A typical customer for this product shall own land area of around 75-300 acres, he is very well respected in the community, an indulgent farmer and leading a luxurious lifestyle. The product is also best for those rich people who lead successful lives in the city but own land in villages and personally wish to get engaged in farming even as income from agriculture is only secondary for them,” added Goyle.
It was mentioned in the report that M&M, which commands a market share of around 43 per cent in India, hopes to cater to both ends of the market with the launch. The Mumbai-based company had launched Yuvraj, a compact tractor at Rs 1,75,000 — the cheapest tractor in India. The company managed to sell 6,000 units of Yuvraj during the last financial year and aims to treble its sales this year. It is looking at expanding the market and entering more states and hopes to close the year by selling 18,000 units of Yuvraj. M&M saw a growth of 22 per cent in overall tractor sales at 213,653 units last year, against 174,634 units in 2009. The company’s growth target for 2011 is 15 per cent on the back of a strong monsoon, according to reports.


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