CNH launches engine plant in Greater Noida, targets 90% localisation

CNH, a global player in agriculture and construction equipment, has announced the commencement of its engine plant in Greater Noida with an annual capacity of 20,000 units. This facility will manufacture the 2.8L F28 engine, with a goal of achieving 90 per cent localisation by year-end to improve cost competitiveness. Currently, it sources around 65 per cent of engine components locally.

 

The company has invested $15 million to localise the 2.8L F28 engine, which was developed in Europe, to reduce import dependence and improve cost efficiency.

 

Narinder Mittal, president and managing director, CNH India, stated, "The purpose of localising in India is to make our products more competitive and affordable. Importing engines would not be viable, so we decided to manufacture them to better serve the Indian market and strengthen our export capabilities."

 

 

The F28 engine will power CNH’s tractors and construction equipment, targeting both domestic and export markets. The company currently exports 10,000 tractors annually and aims for 70 per cent of those exports to feature the new engine. The company has also partnered with South Korea’s LS to manufacture 8,000–10,000 compact tractors in India for export to North America, further strengthening its global footprint.

 

In the domestic market, the company aims to double its tractor market share within the next five years. The current market share stands at 4.1 per cent.

 

The 2.8L F28 engine, licensed from FPT Industrial, is targeting to capture 10 per cent of the 50-horsepower-and-above segment. Around 9 million tractors are sold annually, with this segment accounting for 85–90 per cent of the total market.

 

With the upcoming introduction of TREM V emission norms, the company plans to expand the engine’s application to agricultural machinery in addition to its current use in construction equipment.