In what the Indian press calls “a significant move,” Tractors and Farm Equipment Ltd. (TAFE) has joined hands with ISEKI & Co. Ltd. of Japan to make compact tractors that complement the Indian manufacturer’s range of tractors in terms of horsepower and end-use. TAFE will offer the light utility compact tractors in the 35-54 horsepower range of ISEKI in India.

ISEKI is the largest Japanese farm machinery manufacturer for tractors. It also makes tractors for AGCO. TAFE and have had a working 50 year working relationships with AGCO and is also a significant shareholder in AGCO Corp.

Given the ISEKI-AGCO relationship, the tie-up between TAFE and the Japanese firm, sources said, could provide a new twist to the emerging market dynamics in the tractor industry. The alliance could give TAFE an edge in the mid-size compact tractor space and open up opportunities in newer application areas.

Under the pact, ISEKI will provide TAFE the product technology to produce these tractors. The scope of the pact will also cover sourcing of components/assemblies through TAFE, building on the volume advantage that TAFE offers.