Rajasthan – Tractors and Farm Equipment Limited (TAFE)., a tractor manufacturer, plans to invest up to $132 million (₹1,250 crore) in a new tractor manufacturing plant in north India. The facility will have an annual production capacity of around 60,000 tractors and is expected to be operational within 18 months.
The proposed facility will be TAFE’s fifth tractor plant and its first greenfield tractor manufacturing facility in 29 years. TAFE currently operates four plants with a combined annual capacity of around 260,000 tractors. The new plant will increase its total capacity to approximately 320,000 units per year.
TAFE sold around 214,000 tractors last year, supported by favourable monsoon conditions, healthy farm demand and government measures supporting the agricultural sector. Its domestic business recorded 24.8% growth during the year.
TAFE and its subsidiaries generated group revenue of nearly $1.69 billion (₹16,000 crore). The company expects revenue to grow by around 10% in the current financial year.
Mallika Srinivasan, Chairperson and Managing Director of TAFE, said the additional manufacturing capacity is being planned to support growing demand from both Indian and international markets.
TAFE held around 18% of the Indian tractor market during the first nine months of FY26. The company has also strengthened its position in the popular 41–50 HP tractor segment, where its share increased to around 63% by the end of FY25, according to Crisil.
The new $132 million (₹1,250 crore) plant will strengthen TAFE’s manufacturing presence in north India while providing additional capacity to support domestic sales and tractor exports.
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