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M&M and its Chinese partner, the Jiangsu Yueda Yancheng Tractor Manufacturing Company is committed to dish out Rs. 188 crores. The JV is called Mahindra Yueda (Yanchang) Tractor Company (MYYTCL). The investment is aimed at setting up a R & D center, engine manufacturing plant. Alongside these setups, plans include modernising factories in Yancheng, China. The firm's equity is divided at 49% to the Chinese counterpart, and 51% with M&M. The JV was made possible via the Mahindra Overseas Investment Company (Mauritius), its subsidiary unit.
The joint decision is intended to develop better quality products for the Chinese auto market. The money being pumped in is meant to boost Chinese agricultural machinery market present, and strengthen its position in the industry. Around $18 million will go towards R&D centre and the manufacturing plant. The latter is capable of production of 40,000 units each year. A wide range is available, & includes products with 16 HPto 125 HP.
