New Holland Fiat India, part of the Italian automotive major Fiat Industrial Group plans to invest Rs 1100 crore to set up a new greenfield plant in Maharashtra and increase its tractor manufacturing capacity by 50% in the next three years.

The company would take its tractor capacity to 60,000 units at the Greater Noida plant in Uttar Pradesh with a cumulative investment of Rs 230 crore. Currently it churns our 40,000 tractors per year. Besides, an Rs 550 crore plant will come up at Chakan in Maharashtra to make sugarcane harvesters, cotton pickers and harvest combiner’s for various crop applications in the country.

New Holland MD Rakesh Malhotra told ET, “We have lined up fresh investment to launch new farm implements and emerge as a integrated farm solutions company for the Indian agriculture market. We are also beefing up our R&D facility with an additional investment of Rs 220 crore to developed products and farm equipment for captive application in the Indian market.”

New Holland has started manufacturing tractors in 1998 in India and enjoys a 6% market share where 5.25 lakh units are sold annually. While the market is lead by Mahindra&Mahindra and Chennai based TAFE, the Italian company is targeting a 10% market share in the next few years from the Indian market.

“Our objective is to increase our presence with our superior products. We would expand our tractors production in phases and are aiming a 7% market share in 2014 calendar year and to further increase it to 10% once our cumulative capacity reaches 6-lakh tractors by 2016,” Mr Malhotra added.