Mumbai: Mahindra & Mahindra Ltd (M&M) has announced on Monday that Mahindra (China) Tractor Co has formally commenced operations in China with Anand Mahindra, vice chairman and managing director, M&M, handing over the first tractor produced at the Nanchang factory to the city mayor, Li Douluo, and another to a local farmer, Wan, who becomes M&M 's first Chinese customer.

Mahindra (China) Tractor Co is a joint venture between M&M's 100 per cent overseas subsidiary, Mahindra Overseas Investment Co (Mauritius) Ltd and Jiangling Motor Co Group (JMCG). The joint venture, in turn, acquired the tractor manufacturing assets of Jiangling Tractor Company, a subsidiary of JMCG.

The Nanchang plant has a capacity to manufacture 12,000 tractors a year. Mahindra has an 80 per cent stake in the joint venture entity, while JMCG holds the balance.

Its 10-member board consists of Anand Mahindra, seven others from M&M and two from JMCG.