Mahindra do Brasil announced the construction of its new assembly plant in Araricá near Porto Alegre, RS Brazil. From importing tractor kits of the brand from India, it moves to assembling tractors in a new facility in the biggest market in Latin America. Annual production is expected to reach 8,000 units.
The Mahindra brand arrived in Brazil in 2012, after which in October 2016, Mahindra & Mahindra took over the Brazilian business. Turning point was in 2020, despite all the difficulties caused by the pandemic, Mahindra kept on growing and made the best year in its history in the country.
The Brazilian subsidiary has grown the most in recent years. From 2012 to 2023, Mahindra has grown by more than 10 times. From 200 tractors in the first year, the company sold 2,600 tractors in 2023.
Also the dealer network expanded. In 2016 there were six dealerships, selling Mahindra tractors and for technical assistance. To date there are 80 dealerships.
Main characteristics of Mahindra tractors are low cost, easy to operate, robustness, low maintenance and the longest warranty in the Brazilian market.
“Producers are realizing Mahindra’s global strength. They are looking for partnership with the brand”, says Jak Torretta, CEO of Mahindra do Brasil. “They know they will find a tractor that has the best cost-benefit ratio on the Brazilian market”.
Agriculture in Brazil isn’t just about farming large areas and exporting products to the world market. Also there are medium and small sized producers. And these put more than 70% of the daily food on our table. These producers need new tractors and machines.
Over 50 percent of the tractors in Brazil is more than 15 years old. In order to continue the fight for lower production costs, Mahindra is especially targeting this audience.
Mahindra Finance and CNM (Consortium National Mahindra) will offer financing to these small and medium-sized producers.
Total area of the new Mahindra facilities in Araricá will cover 93,000 m2, of which the assembly plant will cover 14,000 m2. Further expansion is expected to reach 30,000 m2. Initial investment is about 11 million USD, increasing the next 5 years up to an estimated 20 million USD.
According to Viren Poli, CEO and President of Mahindra Americas, the new plant near Porto Alegre, will not just produce for the Brazilian market, but for the entire Mercosur region.
