China has a conducive business environment

Sanjeev Mohoni, President & CEO, Mahindra China, speaks on the measures that can be taken to boost business relationships between India and China.

What are the factors that made China one of your preferred locations to establish a business presence?
Among the main factors, China is our neighbour and the biggest tractor market in the world, after India. Further, Mahindra being the number 1 tractor company in the world by volumes, we preferred China as a location, given its great emphasis on farm mechanisation and productivity.

How is the environment to pursue business in China? Could you share the experience of your JV?
China has a conducive investment and business environment. Infrastructure is extremely good – be it in terms of travel, transportation, import/export, port infrastructure, availability of power and other utilities, urban centres and living amenities. Having said that, the current environment is becoming more challenging which is reflective of the overall slowdown in the Chinese economy. This is also on account of the overall excess capacities built into our industry and the proliferation of multiple manufacturers. Today, the availability of labour is also another challenge.

What are the policy measures and support from the Chinese government that have helped Mahindra to strengthen its business presence in China?
As I have mentioned before, the Chinese government enables quick and hassle-free paperwork, makes land and other utilities available in a quick turnaround time and in sufficient quantity as well as provides specialised incentives for development of business.

What can be done from the Indian end to ease the growth of business and trade between the two countries?
We could encourage the learning of Chinese language among Indians, apart from encouraging INR/RMB direct trade and Chinese investment in Indian infrastructure and business.

With China showing keen interest in financing India´s infrastructure development plan, how do you see the business environment between the two countries in the times to come?
The business environment will improve and only become more open, without the intermediaries of a third currency. It will also help in addressing the trade imbalance issue between these two great nations. I am certain this will lead to more and more people travelling between the two countries, both for business and for pleasure.

Mahindra´s China Focus
In 2009, Mahindra entered into a joint venture with China´s Yueda Group to manufacture and sell top-quality tractors in the growing Chinese market. Leveraging the design, manufacturing, and R&D expertise and Yueda´s well-known Jinma brand, extensive distribution network and manufacturing facilities, Mahindra looks to lead the Chinese tractor market.

The company´s state-of-the-art plant at Yancheng has an annual capacity of 70,000 tractors, product development and research infrastructure, a CED paint shop, testing facilities, and an excellent quality assurance system. It manufactures a range of 16-125 HP Jinma tractors with low fuel consumption, easy operation, and versatility.

Mahindra has award-winning products, a trusted brand, and a distribution network covering more than 25 Chinese provinces.