The market sentiment is still on the downside. Forecasts are kept narrowing from the start of this fiscal. Some hopes are on for festival season but need to wait and see. Overall, this financial year will see a flat or negative growth compare to last year.

What is your strategy to expand business for existing product range?
We have made a significant impact in sub 30HP compact tractor industry and established ourselves as leading supplier to this segment. Until few years ago, it was also an underperforming area, like how we see the mini excavators now.

Compact tractor Industry is further expected to grow and reach one-lakh units by FY2022 from around 50000 units now. No surprise, if this segment lead the industry in next 10 years, with the land holding pattern of India, and increasing awareness of farmers like more than ever.

Considering above, we are now consolidating the businesses in agricultural tractors by associating with every OEM and increase the volumes day by day. This will give advantage to propose good deals for construction industry in coming days. I am sure, compact construction equipment industry also will pick up in similar lines. With great numbers in Agri Sector, customers can have competitive advantage on Mitsubishi Diesel Engines, in addition to quality and ruggedness that we already known for.

What are the challenges you see are faced by the industry in dealing with upcoming demand and supply?
The market sentiment is still on the downside. Forecasts are kept narrowing from the start of this fiscal. Some hopes are on for festival season but need to wait and see. Overall, this financial year will see a flat or negative growth compare to last year. In my prediction, both agro & construction sector may be back to track during first quarter of next fiscal.

What is your expectation from the industry bodies and policy makers to capitalize the present market?
Liquidity crunch is the term I came across more often when talking to industry. If that is the ground reality, then Industry bodies need to accelerate their efforts in settling or allocating sufficient funds for the projects getting awarded. Therefore, they do not get halt or stay in papers for long. Seeing last two years’ progress in Infrastructure and construction segment, almost every OEM enhanced their production capacity during last year and now it is difficult to operate with underutilization for long. Therefore, it is equal call for OEMs as well, to optimize the resources & operations. So they can sail through the downtrend without much harm, and be prepared to cater the market once it is back to track.

What is your company’s outlook for 2022?
We are aiming high with growing trend of small tractor segment that I explained earlier. With our new customers on board, another milestone is not far away. There are plans to introduce few new variants, and also an exclusively a new engine model for compact machines by 2022. With that, our offering to compact machine market will be much more attractive, comprehensive and competitive. Our target is to increase volumes by 30% more from now by 2022. For this, we are also working on certain export markets.

Kenji Kawamoto, Managing Director, Mitsubishi Heavy Industries VST Diesel Engines Pvt Ltd