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R$ 280 Million Investment Will Expand Tractor And Engine Production In Indaiatuba (SP) By 2030
The Japanese multinational Yanmar will invest R$ 280 million in a new agricultural machinery factory in Brazil, located in Indaiatuba (SP). The project will be executed in three phases by 2030 and promises to double the brand’s production capacity in the country, generating jobs and expanding support for small and medium-sized producers.
The new facility will increase annual tractor production from 5,000 to 7,000 units and will raise national engine manufacturing from 10 to 20 per day by 2029. The construction will be financed with internal resources and will unify the company’s administrative, commercial, and industrial sectors in a single complex.
Growing Demand Drives New Investment
According to Wagner Santaniello, innovation and marketing manager at Yanmar for South America, the consistent increase in demand for tractors, engines, and mini-excavators motivated the expansion. The brand aims to consolidate its market share from 10% to 12% in the coming years, focusing especially on customers with properties between 1 and 150 hectares.
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The best-selling tractors of the brand in Brazil have between 24 and 90 horsepower, are entirely mechanical, and cost between R$ 95,000 and R$ 290,000, serving crops such as fruits, coffee, and grains.
New Plant Will Be Three Times Larger Than The Current One
The new factory will occupy 140,000 m², three times the current area, and will be built in three phases:
- 2027 (Phase 1): Start of production, with the transfer of tractor, engine, and generator lines
- 2029 (Phase 2): Expansion of capacity to 7,000 tractors per year and enlargement of the distribution center
- 2030 (Final Phase): Completion of inventory migration, training center, and administrative structure
The expectation is to generate around 100 direct and indirect jobs by the project’s conclusion.
Agriculture Already Represents 65% Of Operations In Brazil
Yanmar returned to the Brazilian agricultural sector in 2017, after years focused on construction equipment and marine products. Today, agribusiness accounts for 65% of the subsidiary’s revenue in the country. In 2024, the company was one of the few in the sector to register growth — 15% increase in sales, while other manufacturers faced retraction.
Yanmar’s strategy also includes reducing dependency on Moderfrota, the main rural credit line from the government. In 2024, the company launched its own financing line in partnership with the Dutch bank DLL, offering interest rates of 5.99% to 8.99% per year. It also started offering agricultural consortiums, which already represent a significant part of sales.
Do you believe this investment strengthens national agriculture? How can Yanmar’s new factory impact the agricultural machinery market? Share your thoughts in the comments.
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