Mahindra & Mahindra Ltd. has announced it will exit its Japanese agricultural equipment joint venture with Mitsubishi, winding down operations of Mitsubishi Mahindra Agricultural Machinery (MAM) as part of a broader strategic portfolio shift.
The decision follows a comprehensive review of the long-term viability of the JV, which has been loss-making and faced structural challenges within the Japanese farm machinery market, including changing demand patterns and intense competition. MAM’s revenue from operations in FY 2025 was about ₹2,094 crore, but it posted a negative net worth and failed to deliver sustainable profits despite structural measures to restore performance.
Under the exit plan, the Matsue-based associate — a collaboration between Mahindra & Mahindra and Mitsubishi Heavy Industries — will stop production and sales of agricultural machinery by the first half of fiscal 2027. After that, the company will proceed with dissolution and liquidation under Japanese laws. While manufacturing will cease, MAM has said it will continue to provide spare parts and warranty support to existing customers to maintain service continuity.
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This move aligns with Mahindra’s global rationalisation strategy, under which the Mumbai-based conglomerate is pruning underperforming international assets to sharpen its focus on high-growth sectors and achieve better capital allocation. Company leadership has stressed that exiting structurally declining markets allows it to redirect resources toward stronger domestic and profitable international businesses.
The Japanese JV exit follows other overseas divestments by Mahindra in recent years and underscores its commitment to prioritise returns and sustainable growth over maintaining legacy ventures with limited future prospects. Analysts view the move as part of an ongoing transformation under the company’s current management.
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