India's TAFE to make tractors for US

Chennai, April 4 (IANS) India's Tractors and Farm Equipment Ltd (TAFE) will start making two models of high horse power (hp) tractors later this year for US-based AGCO Corpo, said a company official.

AGCO will sell the tractors in Africa, Turkey, South America and other overseas markets.

"From November-December, we will be rolling out two models, 90 hp and 105 hp, for AGCO Corp. We expect to roll out around 150-200 units per month of these models," R.C. Banka, president of the world's third largest tractor manufacturer, told IANS.

Asked whether TAFE's Turkey plant would make the models, Banka said: "The cost of manufacture in Turkey is high compared to here. There may be saving in freight outgo but not in the manufacturing cost."

The city-based TAFE is also participating in the development of AGCO's world tractor project called Centurion.

The US company plans to roll out 50-125 hp tractors under the Centurion family and in the process save a sizeable sum by having common components across the models.

AGCO holds around 23 percent state in TAFE.

TAFE's Chairman and Chief Executive Mallika Srinivasan said the company would make the Centurion tractors in India and ship them out during the second calendar quarter of 2013.