Boosting tractor profits with insightful finance solutions

Since 2011, the Mahindra USA tractor company has grown an astonishing 27% annually versus the 6% industry average. How is this 20-year young-company winning against iconic veterans like John Deere and Kubota?

Power to increase competitiveness
“Mahindra Finance has done far more than just put us on a level playing field,” says Cleo Franklin, VP Marketing, Product Development and Strategic Planning for Mahindra USA, referring to the joint venture between DLL and Mahindra. “Their innovative and insightful programs have given us the power to increase our competitiveness and meet our customer’s needs for financing options.”

#1 in customer satisfaction & loyalty

The joint venture was established in 2011 to provide wholesale and retail finance solutions for Mahindra USA, a wholly-owned subsidiary of India-based Mahindra Group, a $16.7 billion corporation. Since then, Mahindra USA has grown rapidly in the compact tractor segment due to high customer satisfaction (97%, the industry’s highest) and strong customer loyalty (98%, also the industry’s highest).

Going against the trend
To achieve these gains, Mahindra USA has gone against the consolidation trend of its major competitors by investing heavily in its dealer network, new products and support and manufacturing capabilities.  

“Our president, Mani Iyer, believes in providing our customers with a 360 degree perspective,” Franklin says. “Our Product Development team creates the product to meet the customer’s needs. Our Sales Department puts the product in front of the customer. Our Service Department helps support the product after the sale. And Mahindra Finance USA rounds out the offering for a complete customer experience at every touchpoint.”

Market advantage
Thanks to their open relationship, just one month after Mahindra dealers asked for it, Mahindra Finance rolled out a 0% for 84-month financing program (the industry norm is 60 months). Franklin: “This put us in a unique competitive position. It gives us a strong pull with our customer segment, which is used to seeing these kinds of offers on consumer products they are familiar with, such as automobiles. And it provides them with the peace of mind of knowing that we can offer them a solution tailored for their needs.”

Insightful finance solutions
Mahindra Finance has extended its hours and work week to serve dealers in all time zones. It offers a full program of dealer incentives to support the peak selling season. Customers can build up equipment equity during a try before buying rental program. All based on insights from dealers and customers.

The key to winning the future
Franklin: “If you are accessible and can respond with custom solutions, you will win the day. In the future more so than now, business will be built on intimate relationships and the ability to respond to customer needs quickly.”