AGCO Corporation Terminates Agreements with TAFE Amid Unauthorized Actions

AGCO Corporation, a US agricultural equipment maker, announced the termination of multiple agreements with Indian tractor manufacturer TAFE, citing inappropriate actions by TAFE. This includes the end of the Massey Ferguson brand license in several countries. Legal proceedings have been initiated, but AGCO remains committed to the Indian market.

US agricultural equipment maker AGCO Corporation on Monday announced the immediate termination of multiple agreements with Indian tractor manufacturer Tractors and Farm Equipment Limited (TAFE). This includes the termination of the Massey Ferguson brand license, a distributor agreement for India, Nepal, and Bhutan, and an intellectual property license agreement for India, Nepal, Sri Lanka, Bangladesh, and Bhutan.

AGCO cited ''inappropriate and unauthorized actions'' by TAFE that allegedly breached these agreements as the reason for the terminations. The US-based company has also initiated legal proceedings against TAFE in India regarding the use of the Massey Ferguson brand following these terminations.

As a result, TAFE no longer has the authorization to use, distribute, or sell AGCO's Massey Ferguson brand or products in the affected markets. Despite these developments, AGCO reaffirmed its 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.'' AGCO, founded in 1990, reported net sales of approximately USD 14.4 billion in 2023.

(With inputs from agencies.)