Mahindra exits Japanese agricultural machinery joint venture with Mitsubishi

Mitsubishi Mahindra Agricultural Machinery, the Japan-based agricultural machinery joint venture of Mahindra & Mahindra, will exit its agricultural machinery business after determining that the segment is no longer viable in the long term due to changing global demand and structural industry pressures. ‘The company, headquartered in Matsue City and led by CEO Toru Saito, plans to scale down production and sales by the first half of fiscal 2027.

The company is a joint venture between Mahindra & Mahindra and Mitsubishi Heavy Industries under the Mitsubishi Group.

The company said it will gradually phase out the research, development, production and sales of agricultural machinery worldwide, with a full exit planned in the first half of fiscal year 2027. The decision follows a comprehensive review of market conditions, production constraints and long-term viability.

The company, founded in 1914 and long in the business of supplying equipment to farmers in Japan and abroad, said it had pursued reforms, new product development and market expansion to adapt to the changing dynamics of the industry. However, it determined that continued operations in the segment would not be sustainable.

To smooth the transition for customers, the company will continue to supply spare parts and honor product warranties even after production stops. Companies outside these continuing operations will be dissolved through standard liquidation procedures under Japanese law.

The company added that it will reach out to partners individually to manage the transition and will provide maximum possible redeployment support to employees affected by the closure, while expressing its gratitude to customers and stakeholders for their support over decades of operations.