Italian-American off-road construction and agriculture firm CNH plans to invest up to USD 50 million in the farm machinery segment in India this year. Of this, it will invest USD 25-30 million in the tractor business alone.

CNH, which produces and sells farm machinery and equipment under the New Holland brand, will focus on the compact range of tractors of below 30-40 horsepower (HP), apart from targeting to sell 1,000 baler machines (used for managing stubble) this year. The company is working on a tractor model of above 45 HP with a new engine for higher fuel efficiency. The new model is likely to be launched by the end of 2025, as also a bigger tractor of 105 HP lined up for launch in May this year. This tractor is used for bailing and ridge application.

The company manufactures small balers in Pune but imports some components which it intends to localise by the middle of this year. Balers compress agricultural residue into manageable and transportable bales. Small square balers can be used with existing tractors, while the big/round balers require above 100HP tractors for operation.

In the agriculture segment, CNH India has a tractor manufacturing plant with an annual production capacity of 60,000 in Greater Noida, Uttar Pradesh, and another for harvesters in Pune, Maharashtra.