Mahindra & Mahindra (M&M), the global tractor market leader in terms of volume, has had its first major launch in 14 years with the Arjun Novo today in Chennai.
20 Aug 2014 | 8143 Views | By Sumantra B Barooah
Mahindra & Mahindra (M&M), the global tractor market leader in terms of volume, has had its first major launch in 14 years with the Arjun Novo today in Chennai. The Novo, which means ‘to renew’ or ‘to reinvent’ continues Mahindra's trend of naming products that end with an 'O'.
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Mahindra & Mahindra (M&M), the global tractor market leader in terms of volume, has had its first major launch in 14 years with the Arjun Novo today in Chennai. The Novo, which means ‘to renew’ or ‘to reinvent’ continues Mahindra's trend of naming products that end with an 'O'.
The tractor, available in two engine variants (52 hp and 57 hp) is targeted at strengthening Mahindra's position in the above-48 hp tractor segment, where it has a 40 percent market share. The segment size is 105,000 units, or 16 percent of the 635,000-unit Indian tractor market.
The company is banking on increased mechanisation in farming in India to drive growth in this segment, and thereby of the Arjun Novo. "There's increased mechanisation because there's an acute shortage of labour in agricultural farms. That is necessitating the use of tractors with higher horsepower," says Rajesh Jejurikar, chief executive – Farm Equipment and Two-Wheeler divisions, M&M. Once the landholdings size grows across the country, the demand for higher-horsepower tractors will increase further.
The new Arjun Novo replaces the Mahindra Arjun, which was launched in 2000. At Rs 7.35 lakh, it costs Rs 15,000 more than the outgoing model. The existing Arjun model sold 20,000 units during 2013-14. M&M is betting on the Arjun Novo's best-in-class figures in the performance and technology parameters to better this sales number. M&M claims that the Arjun Novo has a lift capacity of 2,200kg, the highest torque of 236.9 Nm and a back-up torque of 33 percent. The company hopes that the syncromesh transmission with 18 (15 forward, 3 reverse) speed options and a service interval of 400 hours will enhance the product's proposition to its customers.
The Arjun Novo is based on a new platform which will see another 4-6 variants in the coming years. M&M has invested Rs. 250 crore in the project and plans to invest an additional Rs 50 crore to develop additional variants. The new tractor is being produced at the company's Nagpur plant.
The Arjun Novo will also head for the US market. "We have built a significant presence in the USA and this will be an enabler (to enhance presence). Mahindra is the number three player in the below-80 segment of the American tractor market,” says Jejurikar.
Photograph (L-R): Rajesh Jejurikar, chief executive (Farm Equipment & Two Wheeler Division), M&M; Dr Pawan Goenka, executive director, M&M; and Rajan Wadhera, chief executive, Truck & Powertrain Division & head, Mahindra Research Valley, astride the Arjun Novo.