Mahindra & Mahindra (M&M) is likely to merge its two tractor JVs in China into a single company.

Presently, Mahindra China Tractor Company (MCTCL) based in Nanchang province and Mahindra Yueda Yancheng Tractor Company (MYYTCL) in Jiangsu operate as two independent companies with the provincial governments as JV partners. MYYTCL is a 51:49 JV between M&M and the Yueda Group.

MCTCL, the smaller JV in which M&M has 84 per cent, with the balance held by Jiangling Motor Company, is likely to be merged with MYYTCL. According to sources, partners in MCTCL have agreed to give up their ownership which will allow M&M to merge the company with MYYTCL.

Besides this, the amalgamation is likely to help in better market focus as the product ranges of the two entities are complementary. The first focuses on tractors below 25 HP while the second one is on 30 HP plus tractors.

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