{"id":11310,"date":"2026-09-01T10:20:00","date_gmt":"2026-09-01T04:50:00","guid":{"rendered":"https:\/\/khetigaadi.com\/news\/?p=11310"},"modified":"2026-09-01T15:06:54","modified_gmt":"2026-09-01T09:36:54","slug":"tafe-greenfield-tractor-plant","status":"publish","type":"post","link":"https:\/\/khetigaadi.com\/news\/tafe-greenfield-tractor-plant\/","title":{"rendered":"TAFE to Build \u20b91,250 Crore Greenfield Tractor Plant"},"content":{"rendered":"

Tractors and Farm Equipment Ltd known as TAFE is expanding its production network. TAFE will build a greenfield tractor plant in a North Indian state with an investment of up to \u20b91,250 crore. This is the greenfield manufacturing site for TAFE in 29 years. The new facility will add 60,000 tractors to TAFE\u2019s capacity within 18 months. TAFE hopes this will strengthen both sales and international exports.<\/p>\n

The expansion follows a financial performance for India\u2019s second-largest tractor manufacturer. TAFE\u2019s group revenues grew by 25% to reach close to \u20b916,000 crore after domestic sales reached 214,000 tractors last year.<\/p>\n

Why is TAFE expanding capacity after 29 years? Demand for agricultural equipment in India and abroad is rising. Therefore TAFE is adding manufacturing capacity to seize upcoming export opportunities.<\/p>\n

\u201cWe will be setting up a North India facility with 60,000 tractors capacity with the location still being decided, ” said Mallika Srinivasan, Chairperson and Managing Director of TAFE. “Capacity is now going to come up because it\u2019s giving us very good confidence in terms of both domestic and export demand.”<\/p>\n

Currently TAFE tractor plant operates four manufacturing units with a combined production capacity of 260,000 tractors:<\/strong><\/h2>\n

– Chennai, Tamil Nadu<\/strong>: Flagship plant established in 1961.<\/p>\n

– Doddaballapur, Karnataka:<\/strong> Facility operational since 1981.<\/p>\n

– Kalladipatti Tamil Nadu:<\/strong> Plant commissioned in 1997.<\/p>\n

– Bhopal, Madhya Pradesh:<\/strong> Unit acquired through Eichers tractor business in 2005.<\/p>\n

In addition TAFE has completed corporate restructuring. TAFE purchased AGCO\u2019s 20% stake for $260 million (\u20b92,300 crore) making TAFE an owned subsidiary of the Amalgamations Group. Farmers who want to explore TAFE\u2019s lineup can compare models on the TAFE Tractors<\/a> website.<\/p>\n

Growth in the 41\u201350 HP segment drives TAFE\u2019s market share. Strong monsoons, state government initiatives and favorable tax policies have encouraged buyers to upgrade. In addition reducing the GST rate on tractors from 12% to 5% has significantly increased demand for higher-horsepower machines.<\/p>\n

According to CRISIL research TAFE\u2019s market share in the 41\u201350 HP tractor segment grew from under 50% in FY20 to 63% by the end of FY25. Lower tax rates have made compact features-rich tractors attractive for dual-use applications in farming, haulage and construction.<\/p>\n

TAFE Vice Chairperson Lakshmi Venu emphasized the changing demographics of farming. During field visits Lakshmi Venu routinely demonstrates operating a 65-HP tractor to support a future where female farmers manage operations with advanced machinery.Industry watchers can read more about TAFE leadership perspectives in the article on TAFE Chairman Technology Vision for the Tractor Industry <\/a>and in coverage on Fortune India MPW 2026<\/a>.<\/p>\n

What is the outlook for North India and exports?<\/h2>\n

North India remains an operational hub for TAFE. TAFE Motors, a subsidiary, already collaborates with German engine manufacturer DEUTZ AG to produce up to 30,000 engines annually at its Alwar plant in Rajasthan.Meanwhile overall rural sentiment remains steady because of kharif sowing and higher Minimum Support Prices (MSP). Although industry analysts project near-term market normalization TAFE expects revenue growth of around 10% this year.<\/p>\n

By bringing its plant online TAFE aims to solidify its position, behind market leader Mahindra & Mahindra while expanding TAFE\u2019s international distribution footprint.<\/p>\n

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