TAFE, Japan’s ISEKI ink pact to make compact tractors in India

Under this agreement, ISEKI will offer product technology to TAFE for the manufacture of these products for the Indian market. The scope of the agreement will, in addition, cover sourcing of components/ assemblies through TAFE, building on the volume advantage that TAFE offers. TAFE will offer ISEKI’s premium light utility compact tractors in the 35-54 hp range in India.

These multi-utility light weight tractors with advanced features can be used for puddling operations, orchard and plantations land preparation, tilling, inter-cultivation and spraying applications to name a few. The tractors will be manufactured in TAFE’s Madurai plant and expected to roll out by 2020.

Mallika Srinivasan, Chairman and CEO – TAFE, said, “This agreement brings together ISEKI’s rich experience in the light utility compact tractor segment globally and TAFE’s strong position in the Indian market, along with its strong manufacturing capability and robust supply chain, to offer Indian customers an international product range that will meet their requirements in new, emerging applications through a unique value proposition.”

TAFE is the world’s third largest tractor manufacturer and second largest in India by volumes with an annual sale of over 150,000 tractors. It is a leading exporter of tractors from India with a turnover in excess of Rs 93 billion.

ISEKI also manufactures tractors for AGCO, with whom TAFE shares a 50 year-old association, the longest partnership in the tractor industry. Kikuchi, Chairman of ISEKI, said, “We’ll promote technical alliances with TAFE by this agreement and collaborate with each other as important partners not only for India but also for our global strategy in long term.”