Many super luxury auto manufacturers sell out their cars on invitation only basis, however Indian utility manufacturer, M&M is getting ready to launch their super premium farm tiller on an invitation basis that is probably a first in the industry.
India’s largest manufacturer of tractors will soon introduce their new premium product, named the Arjun International in India by year end. The tractor is a premium category, exclusively crafter model that will be available for sale only on invitation.
The tractor is powered by a high power engine, featuring an air cooled cab for better driver comfort in the hot Indian summer. The tractor is expected to have a price ranging between INR 14,00,000 to INR 16,00,0000, which is almost double in comparison to the market’s most expensive tractor, and on par with what one buys the Toyota Corolla, Volkswagen Jetta and Honda Civic for in India.
With the launch of their new Arjun International, the manufacturer is aiming at rich farmers who own large lands as well as serve customers who are on both ends of the scale. M&M have been building tractors for more than 4 decades now.
The company’s Sr. VP of marketing and AppliTrac, Sanjeev Goyle said that Andhra Pradesh, Uttar Pradesh and Punjab, has a couple of rich farmers that own large lands. These farmers need a tractor that will match their status. Their new Arjun International tractor will be able to tackle this demand.
According to reports, the new premium tractor has been developed on M&M’s existing Arjun International 75757 tractor. This tractor will deliver a max power of 80bhp that is considerably more powerful when compared to the high selling regular tractors in the market, which have a max power of 35 to 50bhp.
Goyle however, refused to give out more details, regarding the price of the tractor and the vehicle’s expected volumes. This vehicle’s target customer is not a buyer looking to buy his first tractor. According to Goyle, the buyer of this tractor will be one, who already owns many other tractors and is looking to buy a more suitable one, particularly one that will set his status benchmark in the owner’s locality.
According to reports, with the launch of their premium tractor, the company is not going for huge volumes, a product that they will sell to selected buyers in limited numbers. The company’s idea was to showcase this technology in global markets like that of Australia and US.
Goyle added that for their product, a typical customer would be one, whose land area is between 75 to 300 acres, is well respected in his community, leads a luxurious lifestyle and is an indulgent farmer. It is also the ideal product for those who lead a successful life in city, and own land in villages, personally wishing to get engaged in agriculture, even though this is their secondary income.
M&M, which owns a 43% market share in India, is hoping to provide vehicles for both ends of market by this launch. The company had launched the Yuvraj tractor, which priced at INR 1,75,000 is the cheapest tractor available in India. During the last fiscal year alone, the company has managed to sell around 6,000 units of this tractor, which they hope to treble this year.
They are also looking forward to increasing their market share and entering into more states, as they hope to end the year with the sales of around 18,000 Yuvraj tractor models. The company witnessed a 22% growth in their overall sales of tractors last year, selling 2,13,653 models, in comparison to 2009’s 1,74,634 models. M&M has set a growth target of 15% this year following strong monsoon sales.