TAFE Plans ₹1,250 Crore Investment in Fifth Tractor Plant

TAFE, India’s second-largest tractor manufacturer by volume, is planning to set up its fifth tractor manufacturing plant in north India with an investment of up to ₹1,250 crore. The new facility will have an annual production capacity of around 60,000 tractors and is expected to be established within the next 18 months. The exact location is yet to be finalised.

New Plant to Add 60,000 Tractors Annually

TAFE plans to develop the new facility with a production capacity of approximately 60,000 tractors per year. The company currently has a total manufacturing capacity of around 2.6 lakh tractors across four plants.

TAFE Chairperson and Managing Director Mallika Srinivasan said the company is planning the new facility in north India to support both domestic and international demand.

Fifth Plant to Come Up Within 18 Months

The proposed facility is expected to be operational within 18 months. However, TAFE has not yet finalised the location of the plant in north India.

The investment of up to ₹1,250 crore will mark TAFE’s first new greenfield tractor manufacturing facility in 29 years.

TAFE Currently Operates Four Tractor Plants

TAFE currently manufactures tractors at four facilities. Its flagship plant in Chennai was established in 1961, followed by manufacturing facilities at Doddaballapur near Bengaluru in 1981 and Kalladipatti near Madurai in 1997.

The company added its Bhopal plant after acquiring Eicher’s tractor business in 2005. Together, these four facilities provide TAFE with an annual tractor production capacity of around 2.6 lakh units.

Strong Tractor Sales Support Capacity Expansion

The planned investment follows a strong performance by TAFE. The company sold approximately 2,14,000 tractors in the previous year, supporting its decision to expand manufacturing capacity.

TAFE had earlier reported 2,14,951 tractor sales in FY26, its highest-ever sales in a financial year. The company also exported 12,584 tractors during FY26. 

New Plant to Support Domestic and Export Demand

TAFE expects the additional manufacturing capacity to support growing demand from both Indian and international markets. The company is also looking to strengthen its export business through the additional capacity.

Mallika Srinivasan said the company is confident about international growth and is adding capacity in response to domestic as well as export demand.

TAFE Strengthens Manufacturing Footprint in India

With the proposed fifth plant, TAFE will further expand its manufacturing presence in India. The company currently has an annual turnover of more than ₹16,000 crore and exports tractors to over 80 countries, according to its corporate profile. 

The new facility will add another 60,000 tractors of annual capacity to TAFE's manufacturing network once operational, strengthening its ability to serve both the Indian and global tractor markets.