MARKET STRUCTURE · COMPETITIVE · INDIA
CNH restarts India-to-US tractor exports and expands capacity
Economic Times
15 Feb · 5:58 PM
Change
CNH India has resumed full-scale tractor exports to the US and committed about Rs 1,800 crore in capacity expansion over the next two to three years.
Why it matters
CNH India’s restart reverses a late-2025 pause in US-market production and shipments that was triggered by higher duties, restoring a major export destination in its mix. The company is tying the restart to a confirmed tariff reduction under a February 2026 India–US trade agreement, which changes unit economics for India-built tractors and components sold into the US. The Rs 1,800 crore investment over the next 2–3 years includes roughly Rs 1,000 crore for a new greenfield standalone tractor plant, implying incremental capacity beyond the pre-pause baseline. CNH also flagged potential additional competitiveness gains if steel and aluminium tariff relief materializes, which would further affect component cost structures for US-bound supply.
Implications
- • US-bound production lines restart after late-2025 pause
- • New greenfield tractor plant increases future capacity availability
- • Higher export volumes shift component and logistics demand to US lane
- • Capex timeline creates multi-year execution and ramp dependencies
Who is affected
- • CNH India (New Holland, Case IH) manufacturing and export operations
- • Indian tractor and component suppliers to CNH
- • US tractor dealers/importers sourcing CNH India-built models
- • Freight forwarders and port operators handling India–US machinery exports
Source
Read full article on Economic Times →
Topics
World & Politics Trade & Tariffs Business & Markets Manufacturing Agriculture