Mumbai - Mahindra & Mahindra., an agricultural machinery manufacturer, has announced plans to exit its Japan-based joint venture, Mitsubishi Mahindra Agricultural Machinery Co., Ltd. (MAM), with the business expected to be dissolved and liquidated by the first half of fiscal year 2027.
The decision follows several structural initiatives undertaken to restore profitability, but the joint venture has continued to incur losses. According to the company, sustaining the business in its current form has become increasingly difficult despite various reform efforts.
MAM, a partnership between Mahindra & Mahindra and Mitsubishi Heavy Industries, will begin the process of dissolution and liquidation. However, the company will continue limited operations to supply spare parts and provide warranty support to existing customers during the transition period.
The company’s agricultural equipment portfolio includes tractors, combine harvesters, and rice transplanters, serving Japan’s agricultural sector. In addition, MAM acts as the official distributor of Case IH agricultural equipment in Japan.
Established in 1914, MAM has played a long-standing role in supporting agricultural mechanisation, aiming to contribute to the stable supply of food in Japan and international markets. Over the years, the company introduced structural reforms, developed new products aligned with changing market needs, and explored expansion into new markets.
However, management stated that significant shifts in both domestic and global agricultural machinery markets, evolving demand patterns, and production system constraints have affected the company’s long-term business outlook. After extensive evaluation of profitability and sustainability, the joint venture concluded that continuing operations would not be viable.
MAM also confirmed that it will support employees affected by the closure, offering reemployment assistance wherever possible, while retaining staff required to manage ongoing customer support activities.
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