Sonalika, the Punjab based tractor manufacturing firm has begun exports to US. Sonalika is also planning to enter 10 other countries, including developed markets such as Japan, Switzerland, and South Korea.
Sonalika currently sells its products in 80 markets around the world, and plans on locally manufacturing its tractors in Iran this calendar year itself. In the US, Sonalika has tied up with two partners to take care of the South and North regions.
Sonalika has set a target of achieving 1 – 2 percent market share in the US during its first year of operations itself. The estimated market in the US for tractors is around 2 lakh units per annum, with the majority of requirements being 20 – 90 HP tractors.
For Iran, Sonalika plans to start operations with 20 percent localisation initially, and scale up to 40 percent localisation in a year and a half. Sonalika would also get government subsidies in Iran if the company can achieve 40 percent localisation.