Mahindra & Mahindra will exit its Japan-based Mitsubishi Mahindra Agricultural Machinery Co. (MAM) unit by the first half of fiscal year 2027. Despite multiple structural measures aimed at restoring profitability, the joint venture (JV) between the two companies has incurred continuing losses.
According to the company management, it would be difficult to continue MAM sustainably. As a result, the business under the motto “together we challenge” will come to an end.
MAM plans to dissolve and proceed with liquidation, but will continue to operate the business to supply spare parts and warranty to existing customers. MAM’s agricultural machinery portfolio includes products such as tractors, combine harvesters and rice transplanters. In addition, MAM is distributor of Case IH in Japan.
Since its founding in 1914, MAM has engaged in the agricultural machinery business with the aim of contributing to the stable supply of food both in Japan and abroad.
Even amid significant changes in the business environment, the company has pursued growth by implementing structural reforms, developing new products to meet evolving market needs, and making continued efforts to expand into new markets. However, after comprehensively considering recent changes in the domestic and international industry environment and demand structure as well as various constraints related to the production system, and after carefully assessing the profitability of the business and its long-term sustainability over an extended period, MAM has concluded that it would be difficult to continue the business in a sustainable manner.
The company will proceed with the business withdrawal while giving due consideration so as to minimize the inconvenience to all stakeholders, including business partners. Each business partner will be contacted individually in due course.
In addition, except for employees engaged in the continuing business, MAM will provide maximum possible reemployment support to employees who are unavoidably required to leave as a result of this business withdrawal.
