India's largest utility vehicles maker Mahindra & Mahindra Ltd (M&M) said it has bought a majority stake in Chinese State-owned enterprise Jinagsu Yueda Yancheng Tractor Manufacturing Co Ltd (Yancheng Tractor) and also signed a joint venture agreement with the Chinese company.

In a regulatory filing, M&M said Yancheng Tractor will transfer its tractor related assets and current liabilities, worth 335 million yuan ($48.76 million), to the joint venture company.

M&M will hold 51 percent in the joint venture through a unit while Yancheng Tractor will take the balance, it added.

Anjanikumar Choudhari, president of farm equipment sector, M&M, said the joint venture will have a tractor product range going up to 125 horsepower (HP).

"We will also have a large manufacturing base which will be used to not only produce for the domestic market but also for low cost manufacture for exports," Choudhari added.

The tractor industry in China grew to 220,000 units in 2007 from 56,000 units in 2003, a compound annual growth rate of 40 percent, M&M said.

Yancheng Tractor, which makes tractors in a range of 16 HP to 125 HP, owns Huanghai Jinma, the third largest tractor brand in China.

M&M already has a tractor making joint venture in China with Jiangling Tractor Company.