In a manifestation of what seems to be ‘the Nano effect,’ M&M is looking at launching a low-cost tractor, which may well be one of the least expensive tractors in the world. To be launched by June/July 2009, this low-cost tractor – which is yet unnamed – is expected to be priced at around Rs 1.5 lakh and is aimed at farmers who may be on a tight budget and/or who have smaller tracts of farm land.
The low-cost tractor, prototypes of which are already being field tested, will not compete against any other existing tractor in the M&M line-up, or indeed, against any tractor from other manufacturers, and is expected to create a new niche in the market. M&M is likely to tie-up with banks and other financial institutions for making easy finance options available for the purchase of this tractor.
M&M hopes to sell around 5,000 units of its low-cost tractor in 2009, with the sales target being ramped up to 25,000 units in 2010.