AGCO and TAFE conclude commercial partnership with $260m share buyback
AGCO Corp has agreed with TAFE to resolve all outstanding disputes and matters related to their commercial relationship.
Tractors and Farm Equipment LTD, (TAFE) has announced a record performance for the financial year up to 2026, with tractor sales the highest ever in the company’s history. The company concluded the fiscal year delivering 37.4% growth in March 2026, against the domestic industry growth of 29% for the month.
According to TAFE, this exceptional growth reflects its strong product line-up, deep farmer connection, and consistent demand across key agricultural regions. Achieving its highest-ever domestic sales results, from both its Massey Ferguson and Eicher Tractors brands, TAFE’s export momentum remained strong, with 12,584 tractors shipped to international markets
To meet sustained demand across domestic and export markets, TAFE’s manufacturing plants operated at full capacity during the year, with the company said to be actively evaluating capacity expansion initiatives to support future growth and reinforce its position in the global tractor industry.
Vice-chair of TAFE, Dr. Lakshmi Venu said: “This has been a very positive year for both the tractor market and for farmers across the country. In addition to favourable monsoons, the government’s move to reduce GST [Goods and Services Tax] has provided significant relief to the farming sector. We are now seeing a very encouraging trend in the penetration of mechanisation in rural areas.”
While global uncertainties and inflationary pressures arising from ongoing geopolitical tensions and war-related supply disruptions continue to impact input costs, TAFE said that the underlying fundamentals of Indian agriculture remain resilient. Looking ahead, TAFE appears optimistic about the medium-term outlook, supported by continued mechanisation uptake, replacement demand, expanding applications of tractors and implements, and a gradual recovery in key export markets.
While other markets, including New Zealand, appear to be in the doldrums or at best, treading water, the UK also appeared to buck the trend in March, with 2,134 tractors registered-a 45.6% increase over March 2025.
Having been below the seasonal average throughout last year and in the opening two months of this year, March is typically the peak month for registrations, driven by the start of the fieldwork season, the end of the tax year and the introduction of a new registration mark. The March 2026 total was the highest for three years, and slightly above the average for the time of year over the previous five years. The number of tractors registered in the first three months of the year was also the highest for the last three years, and a 34.3% increase on the same period in 2025.
