Mahindra to Shut Down Japanese Agricultural Machinery Unit
Mahindra will exit its Japanese farm equipment unit by mid-2027 due to losses. The unit will be liquidated but will continue providing spare parts to customers.
The prominent automaker based in India, Mahindra & Mahindra Limited, announced on Monday that its subsidiary in Japan will exit the agricultural machinery business by the first half of fiscal year 2027. The decision follows a period of sustained financial losses for the unit, Mitsubishi Mahindra Agricultural Machinery Co (MAM), which the parent company determined could no longer be operated sustainably. While the subsidiary plans to dissolve and proceed with liquidation, it will continue to manage the supply of spare parts to ensure ongoing support for its existing customers. MAM’s product lineup includes essential farming equipment such as tractors, combine harvesters, and rice transplanters. > The unit has incurred losses despite multiple structural measures aimed at restoring profitability, making it difficult to continue the business sustainably. In terms of financial performance, MAM generated revenue of 20.94 billion rupees ($228.9 million) for the fiscal year ending March 31, 2025. This contribution accounted for approximately 1.13% of the group’s total consolidated turnover. The exit marks a strategic shift for the Indian conglomerate as it streamlines its international operations and focuses on more profitable segments within its global portfolio.
