India's M&M buys China tractor plant

India's biggest tractor and utility vehicle maker Mahindra & Mahindra Ltd (M&M) announced the purchase of an 80% stake in Chinese tractor maker Jiangling Tractor Company (JTC). The US$10m sale, and a pledge of another US$8m in investment from the Indian company, makes M&M the first Indian automotive maker to invest in the Chinese auto market. The other 20% of JTC remains in the hands of Jiangling Motor Company Group with whom M&M has signed a joint venture agreement. M&M said it plans to use the JV to develop tractors and other agricultural vehicles both for the Chinese market as well as for export to the rest of the world, including India.