CNH's India technology centre to be the largest by the end of CY24

The centre, which has a headcount of 700, will touch 1,000 by the end of CY24

For CNH, one of the leading global players in agricultural and construction equipment, its India technology centre is on course to become the largest globally by the end of 2024.

The centre, in Gurugram, which now has a headcount of 700, is set to reach 1,000 by the end of 2024. CNH set up its first India technology centre in 2021.

As part of this build-up, the company on Thursday announced the addition of a multi-vehicle simulator (MVS) at its India technology centre.

While the company did not disclose the investment, this is the third such set up by the firm globally.

 

Friedrich Eichler, chief technology officer (CTO), who was at the inauguration of the MVS, said this will play a pivotal role in CNH’s global operations. It will serve as a key platform for various functions, including ergonomics simulation, user experience testing of controls, customer clinics, design reviews for product development teams, product validation and employee training.

For the $24.5-billion firm, this is part of its strategy to build capability and expand production facilities in India.

Eichler, while explaining the importance of the tech centre, said the plan is to increase contribution from India to its global product landscape.

“India for us is a strategic region as it fits into the best-cost-country strategy. It has low wages compared to the US and Europe and highly-skilled engineers and a thriving ecosystem of universities and startups,” he added.

The firm has kept a total outlay of $4.4 billion for research, development and innovation. Of this, the firm has invested around $3 billion in 2023 and around $1.3-1.4 billion will be invested in 2024 globally.

CNH has two focus segments for its tech centres. First, it will move some existing projects to India that cater to the global markets. Second, it will build capabilities in new-age technologies at the centres to develop products for the region as well as exports.

“We are currently working on developing region-specific innovations in India, such as drone technology. This is for precise spraying and weed identification. Also, the development of specialised robots equipped with artificial intelligence (AI) will enhance crop harvesting efficiency. These advancements are being developed by our engineers and could potentially be applied to Europe as well. We are also actively collaborating with startups and universities, fostering an environment of innovation,” he added.

The company is also focusing on increasing its market share in the country, which at present is in low-single digit.

The company has three manufacturing plants — Noida, Pune and Pithampur.

According to Ashish Sharma, vice-president (VP) and managing director (MD), India tech centre CNH, the Noida plant is a hub for developing tractors whereas Pithampur is for compactors for the construction equipment industry. These are exported globally.
 

CNH has announced an investment of $35-45 million for India this year. This investment aims to double CNH’s market share in India.

Currently, it is the global number two player in agriculture but not in India. The firm is investing in increasing production capacity and localising key components like engines. “These localised engines will help meet upcoming emission regulations,” added Eichler.