TAFE Sets Ambitious Target of 2 Lakh Tractor Sales for FY26

Key Highlights:

• TAFE aims to sell 2 lakh tractors in FY26.

• Achieved 17,767 sales in May 2025 with 12.4% growth.

• Secured exclusive Massey Ferguson rights in India.

• New products include a paddy transplanter and, harvester.

• Deutz engine output to rise to 1.3 lakh units by FY28.

Tractors and Farm Equipment Ltd (TAFE) is aiming to sell over 200,000 tractors in the financial year 2025–26, a significant increase from the 175,000 units sold in FY25. This move marks a strong growth strategy by the company to expand its leadership in India’s farm equipment market.

Product Launches and Manufacturing Expansion to Drive Growth

TAFE expects to outpace overall industry growth in FY26, backed by new product introductions and increased manufacturing capacity. In May 2025 alone, the company sold 17,767 tractors, registering a 12.4% rise in domestic sales and a 24% boost in exports, far ahead of the industry averages of 9% and 1%, respectively.

The company’s Tamil Nadu manufacturing plant will play a key role in this growth with the launch of innovative products like a six-row paddy transplanter, track harvester, and new tractor cabins. These new offerings are expected to enhance productivity and meet the modern needs of Indian farmers.

Key Projects and Engine Capacity Expansion

TAFE is also investing in the future with the Deutz engine program at its Alwar plant. The company plans to increase the production capacity of these engines from 70,000 units in FY25 to 130,000 units by FY28. This will further strengthen TAFE's ability to meet growing demand both in domestic and international markets.

Exclusive Rights to the Massey Ferguson Brand in India

In a significant move, TAFE has successfully resolved its dispute with the US-based AGCO Corporation over the Massey Ferguson brand. Through an out-of-court settlement, TAFE has now secured exclusive rights to the Massey Ferguson brand in India, Nepal, and Bhutan.

Also Read: AGCO and TAFE Reach Agreement on Commercial and Shareholding Issues

This agreement also includes rights to all related technologies, including electric tractors, harvesters, telematics, drones, and precision agriculture tools. TAFE will repurchase AGCO’s 20.7% equity stake in the joint venture for $260 million, making it a wholly owned subsidiary of the Chennai-based Amalgamations Group.

TAFE expressed gratitude to its board members, legal and financial advisors, and especially the Chairman of the Amalgamations Group, A. Krishnamoorthy, for their guidance and support in finalizing the deal.

Also Read: Mahindra Tractors Sales Report June 2025: Sold 51,769 Units, Records 13% Sales Growth

CMV360 Says

With a strong product pipeline, factory upgrades, and exclusive brand ownership, TAFE is confident in its goal of crossing the 2 lakh tractor sales milestone in FY26. The company’s strategic steps are aimed at maintaining a leading position in India’s agri-machinery sector amid rising competition and evolving farmer needs.

TAFE's aggressive growth plans, innovation-driven product development, and brand consolidation show its clear intent to lead the future of farming in India and beyond.