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John Deere and Mahindra have squared off in the US over the latter’s advertising claims.
John Deere complained that its Indian rival had been exaggerating the number of tractors it had sold.
The National Advertising Review Board (NARB) in the US told Mahindra it should modify its claims to being “No. 1 selling tractor” and “over 2.1 million Mahindra tractors sold”, and that it should cease referring to “best warranty” and “superior oil protection”.
Deere complained to the National Advertising Division (NAD) in 2018, saying the “No. 1” claim was misleading and did not disclose the total number of tractors included as Mahindra and Mahindra-owned Swaraj branded products. It also excluded certain vehicles from the definition of ‘tractors’.
The NAD also recommended that Mahindra cease claiming “the industry’s best warranty”. But it did not preclude the company from making truthful claims for specific attributes of the warranty that made it superior to its competitors, notably the duration of the warranty.
The NAD also recommended that Mahindra should stop claiming “superior protection with our branded oils” due to a lack of supporting evidence.
Mahindra has appealed the NAD’s recommendation to the NARB, which suggested that the “No. 1” claim be qualified with a clear disclosure of all the tractor brands involved and an indication of the time period to which the claim relates.
Mahindra argued that its “best warranty” claims were “puffery” and even if they were not, that their powertrain warranty was indeed longer than any of its competitors’.
Mahindra has advertised that it has agreed to comply with the findings.
The arrival of new F8 and F9 designations for its 8000 and 9000 series forage harvesters, signals a swag of upgrades from John Deere, highlighted by topping the 1000hp mark for the first time.
While tractors combines and machinery for agriculture and construction is still its key business, John Deere appears to be taking opportunities in the hightech sector via acquisition, with the recent purchase of Sentera, a Minnesota-based company that specialises in equipment for capturing and interpreting aerial images.
John Deere have recently announced upgrades to its round baler offerings, with all models of this latest generation equipped with advanced ISOBUS capabilities, allowing them to be fully integrated into the John Deere Operations Center.
With agriculture in New Zealand coming out of the doldrums over the last few months and the recent announcement of a 20% tax write-off for capital purchases, it likely that farmers will be spending on tractors.
Recent results from its 2024 financial year has seen global farm machinery player John Deere record a significant slump in the profits of its agricultural division over the last year, with a 64% drop in the last quarter of the year, compared to that of 2023.
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