New Delhi, Mar 30: Mahindra and Mahindra (M&M) is working towards setting up a subsidiary in Europe to sell its tractors, its vice chairman and managing director Anand Mahindra has said. The country's largest tractor maker is currently doing a study, including scouting for possible locations in western Europe, to set up the subsidiary for marketing the tractors in the whole region, Mahindra told a news agency. "The study is on. We are looking at a couple of locations in western Europe like Spain and Portugal," Mahindra said but added that the process has been put on "little bit of hold" due to the current international scenario, especially the situation in Iraq. M&M plans to initially market fully-built tractors through the subsidiary and later set up a unit to assemble tractors imported from India in knocked-down condition, a senior official at its farm equipment division had earlier said. The European subsidiary was being set up after the company abandoned plans to buy a stake in Czech state-owned tractor maker, Zetor, in 2001.

M&M is likely to target the mid-range market segment in Europe with its 20-60 horse power tractors.

The company currently sells its tractors in the US market through an overseas marketing arm as well as other countries.

Bureau Report