AGCO Corporation Terminates Agreements with Indian Tractor Manufacturer TAFE

US agricultural equipment maker AGCO Corporation has terminated multiple agreements with Indian tractor manufacturer Tractors and Farm Equipment Limited (TAFE) due to alleged breaches. This includes the Massey Ferguson brand license agreement among others. AGCO has initiated legal proceedings and is committed to the Indian market.

US agricultural equipment giant AGCO Corporation has abruptly ended several agreements with Indian tractor manufacturer Tractors and Farm Equipment Limited (TAFE), the Indian company announced on Monday.

The terminations involve the Massey Ferguson brand license, a distributor agreement covering India, Nepal, and Bhutan, and an intellectual property license spanning India, Nepal, Sri Lanka, Bangladesh, and Bhutan.

AGCO cited ''inappropriate and unauthorised actions'' by TAFE as the reason for this drastic move.

The US-based company has lodged legal proceedings against TAFE in India concerning the unauthorized use of the Massey Ferguson brand.

Consequently, TAFE can no longer use, distribute, or sell Massey Ferguson products in the affected regions.

This action follows separate at-will termination notices that AGCO served TAFE in April 2024 for various commercial agreements.

AGCO emphasized its ongoing commitment to the Indian market, stating, ''India remains an important market for the future of agriculture, and AGCO is committed to partnering with farmers to grow the respected Massey Ferguson brand.''

The company, founded in 1990, reported net sales of approximately USD 14.4 billion in 2023.

(With inputs from agencies.)