Italian-American agriculture equipment firm CNH’s India unit plans to resume full-scale tractor exports to the US and invest approximately ₹1,800 crore over the next two to three years, capitalising on a recent India-US trade agreement that reduced tariffs on Indian goods to 18 per cent from as high as 50 per cent.
The New Delhi-based subsidiary, which operates brands like New Holland and Case IH, halted most US-bound shipments late last year after higher duties made them unprofitable. Production for the US market was paused in the final months of 2025, except for limited-compact tractor models used for testing and customer trials.
In an interview with PTI at its Pune plant site, CNH India President and Managing Director Narinder Mittal said the company has now given the green light to restart production and supplies.
“With the US tariff now reduced to 18 per cent, we have immediately resumed full-fledged tractor exports from India to the US,” Mittal said.
“Volumes will be higher than last year, thanks to the addition of new compact tractor models, maintaining our US contribution at around 30 per cent of overall exports despite the current downturn in the American market.”
Exports had previously included utility light tractors (under 75 horsepower) and utility medium models (up to 120 horsepower), alongside components. The resumption aligns with CNH’s “India for Global” strategy, which positions the country as a key hub for small and medium tractors and aggregates supplied to plants in the US, Europe and Latin America.
The trade deal, announced in early February 2026, has also opened avenues for potential relief on steel and aluminium tariffs, further enhancing competitiveness for Indian-made components.
To support rising domestic demand, resumed exports and long-term growth, CNH India has outlined a fresh investment of about ₹1,800 crore over the next two to three years.
Of this, roughly ₹1,500 crore will go toward the agriculture segment, including tractors, harvesters and crop solutions, and ₹300 crore will support construction equipment.
“We are committing a fresh investment of approximately ₹1,800 crore over the next two to three years,” Mittal said, out of which an estimated ₹1,000 crore will go for a new greenfield standalone tractor manufacturing plant.
The facility, CNH’s fourth in India, aims to double the company’s annual tractor production capacity from around 60,000 units (with 59,000 produced at the existing Greater Noida plant in 2025) to about 1,20,000 units once fully operational.
Land acquisition discussions are underway with state governments, with Uttar Pradesh as the preferred location due to synergies with the existing Noida facility and supply chain. Other options include Haryana, Rajasthan and Punjab, aided by improving infrastructure, he said.
Mittal said clarity on the site is expected by the second quarter of 2026, with construction to begin this year and commissioning in early 2028.
The investment follows short-term debottlenecking at the Noida plant, which increased capacity by about 15 per cent to address saturation above 75-80 per cent utilisation.
CNH India, which grew tractor sales by 28 per cent in calendar 2025 to around 48,000 units domestically (including SAARC), held a 4.3 per cent market share, targets 1,00,000 annual tractor sales in India by 2030, at least doubling its share and minimum 10 per cent year-on-year growth.
The company exported 11,000 units last year, of which about 30 per cent were shipped to the US, prior to temporary tariff-related disruptions.
The investment reflects broader optimism for India’s agricultural mechanisation over the next two decades, bolstered by favourable policies like the recent GST reduction and government subsidies.
CNH India manufactures and sells combine harvesters, sugarcane harvesters, balers (small square and round), rotavators, and various crop headers/implements for the Indian market.
It also produces and exports components/aggregates like axles, gearboxes, engines, and drivelines to global markets under its “India for Global” strategy.
