Mahindra's to exit Japan agricultural machinery business

The Board of Mitsubishi Mahindra Agricultural Machinery (MAM), an associate company of Mahindra and Mahindra, has approved to withdraw from the agricultural machinery business. The business which supplies spare parts for Mahindra’s products and product warranty services would however continue to operate.

The Japanese associate has been making losses despite multiple structural measures by the parent aimed at restoring its profitability.

The revenue from operations of MAM for the year ended 31 March 2025 was ₹2,094.17 crore and after elimination of inter-company transactions with the Mahindra Group, MAM contributed ₹1,786.03 crore or 1.13 per cent to the consolidated turnover.

The net worth of MAM on 31 March 2025 was negative ₹17.74 crore. It posted a loss of ₹227.42 crore in the same year.

“On completion of the liquidation procedure, the promoter group would not have to incur the annual loss as well as funding these losses,” the company has said.

Since its founding in 1914, MAM has engaged in the agricultural machinery business. Even amid significant changes in the business environment, the company pursued growth by implementing 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, it would be difficult to continue the business in a sustainable manner,” the company said.

Mahindra had earlier in February committed to set up an integrated auto and tractor manufacturing facility in Maharashtra with a commitment of ₹15,000 crore. The facility is being developed across an area of 1,500 acres in Vidarbha, complemented by a 150-acre supplier park in Sambhajinagar. Once fully operational, it will have an annual production capacity of over 500,000 vehicles and 100,000 tractors, making it Mahindra’s largest integrated manufacturing footprint in the country, the company said.