Agricultural and construction equipment giant CNH Industrial is betting big on China's market potential. The global leader, which has operations in over 180 countries worldwide, believes that China has the potential to generate new revenue growth.
CNH Industrial president for Asia, Middle East, and Africa, Stefano Pampalone, mentioned that the company is now renewing its focus on the Chinese market, partly due to its size but most importantly due to the potential it offers.
The world's largest capital goods company plans to introduce its latest tech and products to the country to meet the demands of Chinese consumers and industries. CNH Industrial aims to help Chinese companies and institutions maximize their efficiency and productivity through the various products and services it offers.
CNH Industrial, which is controlled by investment firm Exor, offers various equipment under different brands for agriculture and industrial use. The company offers agricultural and construction equipment under its Case and New Holland brand. It offers specialty vehicles, buses, and commercial vehicles under its Iveco brand name. CNH Industrial also offers powertrains for marine and industrial applications under its FPT Industrial subsidiary.
The New York Stock Exchange-listed company is particularly interested in supplying its agricultural equipment in China. Pampalone explained that China is currently seeing a surge in demand for sophisticated agricultural technologies and the company's lineup of products fits right in for advanced applications such as precision and large-scale farming.
CNH Industrial also plans to capitalize on the growing demand for more advanced equipment that utilizes new tech trends such as automation, electrification, and digitization. Pampalone revealed that the company's approach in China will be to become more market-focused and customer-centered.
The executive further stated that the company does consider China to be a massively high-growth market and that it is continually trying to find opportunities to expand in the country through the establishment of partnerships and joint ventures.
As of the moment, the company currently has six manufacturing facilities and five research and development centers in China. The company's plant in Harbin is China's largest agricultural equipment manufacturing facility, with CNH having invested more than $171 million on the complex.
Since 2013, CNH has seen an 8 percent combined average growth rate in consolidated revenues in its business in China. With CNH presence along with several other local and international players, China has become one of the world's largest agricultural equipment manufacturers.
The majority of the manufacturers in China are located in the country's Henan province, Northeast China's Liaoning province, and East China's Shandong, Jiangsu and Zhejiang provinces. According to analysts, China's agricultural equipment market could reach more than $50 billion by 2025.
